Penske Automotive Group Inc (PAG)vsSouthern Company (SO)
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
SO
Southern Company
$91.80
-0.68%
UTILITIES · Cap: $103.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 5% more annual revenue ($31.72B vs $30.18B). SO leads profitability with a 14.5% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 2.09. SO earns a higher WallStSmart Score of 56/100 (C).
PAG
Buy51
out of 100
Grade: C-
SO
Buy56
out of 100
Grade: C
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
-25.0%
Fair Value
$73.42
Current Price
$91.80
$18.38 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 25.8%
Areas to Watch
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
Expensive relative to growth rate
Earnings declined 0.8%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bull Case : SO
The strongest argument for SO centers on Market Cap, Price/Book, Operating Margin.
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 : SO
The primary concerns for SO are PEG Ratio, EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
PAG carries more volatility with a beta of 0.89 — expect wider price swings.
SO is growing revenue faster at 8.0% — sustainability is the question.
PAG generates stronger free cash flow (152M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SO scores higher overall (56/100 vs 51/100). 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.
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 →Southern Company
UTILITIES · UTILITIES - REGULATED ELECTRIC · USA
Southern Company is an American gas and electric utility holding company based in the southern United States. It is headquartered in Atlanta, Georgia, with executive offices also located in Birmingham, Alabama.
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