Penske Automotive Group Inc (PAG)vsResMed Inc (RMD)
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
RMD
ResMed Inc
$206.76
-0.06%
HEALTHCARE · Cap: $30.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 473% more annual revenue ($31.72B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 2.9%. RMD appears more attractively valued with a PEG of 1.23. RMD earns a higher WallStSmart Score of 73/100 (B).
PAG
Buy51
out of 100
Grade: C-
RMD
Strong Buy73
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.7%
Fair Value
$170.26
Current Price
$173.81
$3.55 premium
Margin of Safety
-13.1%
Fair Value
$229.58
Current Price
$206.76
$22.82 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 35.3%
Safe zone — low bankruptcy risk
Every $100 of equity generates 25 in profit
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bull Case : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.4% and operating margin at 35.3%. Revenue growth of 10.8% demonstrates continued momentum.
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.
Bear Case : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
PAG profiles as a value stock while RMD is a mature play — different risk/reward profiles.
PAG carries more volatility with a beta of 0.89 — expect wider price swings.
RMD is growing revenue faster at 10.8% — sustainability is the question.
RMD generates stronger free cash flow (520M), providing more financial flexibility.
Bottom Line
RMD scores higher overall (73/100 vs 51/100), backed by strong 27.4% margins and 10.8% revenue growth. Both earn "Strong 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.
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 →ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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