Carvana Co (CVNA)vsPenske Automotive Group Inc (PAG)
CVNA
Carvana Co
$67.25
+5.89%
CONSUMER CYCLICAL · Cap: $70.31B
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 41% more annual revenue ($31.72B vs $22.52B). CVNA leads profitability with a 6.4% profit margin vs 2.9%. PAG trades at a lower P/E of 13.1x. CVNA earns a higher WallStSmart Score of 56/100 (C).
CVNA
Buy56
out of 100
Grade: C
PAG
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-74.9%
Fair Value
$40.04
Current Price
$67.25
$27.21 premium
Intrinsic value data unavailable for PAG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Revenue surging 52.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.9x book value
6.4% margin — thin
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% demonstrates continued momentum.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : CVNA
The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.64 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while PAG is a value play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.45 — expect wider price swings.
CVNA is growing revenue faster at 52.0% — sustainability is the question.
PAG generates stronger free cash flow (152M), providing more financial flexibility.
Bottom Line
CVNA scores higher overall (56/100 vs 48/100) and 52.0% 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.
Carvana Co
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.
Visit Website →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.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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