Kinder Morgan Inc (KMI)vsPenske Automotive Group Inc (PAG)
KMI
Kinder Morgan Inc
$31.41
-0.35%
ENERGY · Cap: $70.13B
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 81% more annual revenue ($31.72B vs $17.52B). KMI leads profitability with a 18.9% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 2.09. KMI earns a higher WallStSmart Score of 64/100 (C+).
KMI
Buy64
out of 100
Grade: C+
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-29.1%
Fair Value
$24.36
Current Price
$31.41
$7.05 premium
Margin of Safety
-1.7%
Fair Value
$170.26
Current Price
$173.81
$3.55 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Earnings expanding 36.0% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KMI
The strongest argument for KMI centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.9% and operating margin at 29.9%. Revenue growth of 13.8% demonstrates continued momentum.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : KMI
The primary concerns for KMI are PEG Ratio.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMI profiles as a mature stock while PAG is a value play — different risk/reward profiles.
PAG carries more volatility with a beta of 0.89 — expect wider price swings.
KMI is growing revenue faster at 13.8% — sustainability is the question.
KMI generates stronger free cash flow (687M), providing more financial flexibility.
Bottom Line
KMI scores higher overall (64/100 vs 51/100), backed by strong 18.9% margins and 13.8% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Kinder Morgan Inc
ENERGY · OIL & GAS MIDSTREAM · USA
Kinder Morgan, Inc. is one of the largest energy infrastructure companies in North America. The company specializes in owning and controlling oil and gas pipelines and terminals.
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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