WallStSmart

Penske Automotive Group Inc (PAG)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 1174% more annual revenue ($31.72B vs $2.49B). STRL leads profitability with a 11.7% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 2.09. STRL earns a higher WallStSmart Score of 53/100 (C-).

PAG

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 5.3Quality: 4.3
Piotroski: 4/9

STRL

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 8.0Value: 3.0Quality: 5.8
Piotroski: 6/9Altman Z: 2.89
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PAGFair Value (-1.7%)

Margin of Safety

-1.7%

Fair Value

$170.26

Current Price

$173.81

$3.55 premium

UndervaluedFair: $170.26Overvalued

Intrinsic value data unavailable for STRL.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAG2 strengths · Avg: 8.0/10
P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

STRL2 strengths · Avg: 10.0/10
Return on EquityProfitability
32.1%10/10

Every $100 of equity generates 32 in profit

Revenue GrowthGrowth
51.5%10/10

Revenue surging 51.5% year-over-year

Areas to Watch

PAG4 concerns · Avg: 3.3/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Debt/EquityHealth
1.563/10

Elevated debt levels

STRL4 concerns · Avg: 2.0/10
PEG RatioValuation
4.442/10

Expensive relative to growth rate

P/E RatioValuation
72.5x2/10

Premium valuation, high expectations priced in

Price/BookValuation
23.4x2/10

Trading at 23.4x book value

EPS GrowthGrowth
-22.6%2/10

Earnings declined 22.6%

Comparative Analysis Report

WallStSmart Research

Bull Case : PAG

The strongest argument for PAG centers on P/E Ratio, Price/Book.

Bull Case : STRL

The strongest argument for STRL centers on Return on Equity, Revenue Growth. Revenue growth of 51.5% 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 : STRL

The primary concerns for STRL are PEG Ratio, P/E Ratio, Price/Book. A P/E of 72.5x leaves little room for execution misses.

Key Dynamics to Monitor

PAG profiles as a value stock while STRL is a growth play — different risk/reward profiles.

STRL carries more volatility with a beta of 1.64 — expect wider price swings.

STRL is growing revenue faster at 51.5% — sustainability is the question.

PAG generates stronger free cash flow (152M), providing more financial flexibility.

Bottom Line

STRL scores higher overall (53/100 vs 51/100) and 51.5% 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.

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 →

Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

Want to dig deeper into these stocks?