CarGurus (CARG)vsPenske Automotive Group Inc (PAG)
CARG
CarGurus
$27.42
+0.18%
CONSUMER CYCLICAL · Cap: $2.45B
PAG
Penske Automotive Group Inc
$171.02
-0.34%
CONSUMER CYCLICAL · Cap: $11.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 3280% more annual revenue ($31.72B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 2.9%. CARG appears more attractively valued with a PEG of 0.83. CARG earns a higher WallStSmart Score of 65/100 (C+).
CARG
Buy65
out of 100
Grade: C+
PAG
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.6%
Fair Value
$35.55
Current Price
$27.42
$8.13 discount
Intrinsic value data unavailable for PAG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 63 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 24.5%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Trading at 10.4x book value
Earnings declined 8.4%
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CARG
The strongest argument for CARG centers on Return on Equity, Altman Z-Score, PEG Ratio. Profitability is solid with margins at 15.9% and operating margin at 24.5%. Revenue growth of 14.8% demonstrates continued momentum.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : CARG
The primary concerns for CARG are Price/Book, EPS Growth.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.62 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
CARG profiles as a mature stock while PAG is a value play — different risk/reward profiles.
CARG carries more volatility with a beta of 1.21 — expect wider price swings.
CARG is growing revenue faster at 14.8% — sustainability is the question.
PAG generates stronger free cash flow (152M), providing more financial flexibility.
Bottom Line
CARG scores higher overall (65/100 vs 48/100), backed by strong 15.9% margins and 14.8% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
CarGurus
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.
Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
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