Penske Automotive Group Inc (PAG)vsWPP PLC ADR (WPP)
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
WPP
WPP PLC ADR
$18.97
+1.12%
COMMUNICATION SERVICES · Cap: $4.05B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 134% more annual revenue ($31.72B vs $13.55B). PAG leads profitability with a 2.9% profit margin vs -1.6%. PAG appears more attractively valued with a PEG of 2.09. PAG earns a higher WallStSmart Score of 51/100 (C-).
PAG
Buy51
out of 100
Grade: C-
WPP
Avoid32
out of 100
Grade: F
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
+75.6%
Fair Value
$75.12
Current Price
$18.97
$56.15 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 1.7B in free cash flow
Areas to Watch
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
Operating margin of 2.2%
Weak financial health signals
Expensive relative to growth rate
ROE of -5.3% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bull Case : WPP
The strongest argument for WPP centers on Free Cash Flow.
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 : WPP
The primary concerns for WPP are Operating Margin, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.13 is elevated, increasing financial risk.
Key Dynamics to Monitor
PAG profiles as a value stock while WPP is a turnaround play — different risk/reward profiles.
PAG carries more volatility with a beta of 0.89 — expect wider price swings.
PAG is growing revenue faster at -1.1% — sustainability is the question.
WPP generates stronger free cash flow (1.7B), providing more financial flexibility.
Bottom Line
PAG scores higher overall (51/100 vs 32/100). WPP offers better value entry with a 75.6% margin of safety. Both earn "Buy" and "Avoid" 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 →WPP PLC ADR
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
WPP plc, a creative transformation company, provides communications, expertise, trade and technology services in North America, the UK, Western Continental Europe, Asia Pacific, Latin America, Africa, the Middle East, and Central and Eastern Europe. The company is headquartered in London, the United Kingdom.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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