Analyzing Penske Automotive Group (PAG) and Lazydays (LAZY)

Penske Automotive Group (NYSE:PAG) and Lazydays (NASDAQ:LAZY) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Profitability

This table compares Penske Automotive Group and Lazydays’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penske Automotive Group 2.95% 17.68% 4.00%
Lazydays N/A 7.75% 1.93%

Dividends

Penske Automotive Group pays an annual dividend of $1.44 per share and has a dividend yield of 3.3%. Lazydays does not pay a dividend. Penske Automotive Group pays out 33.4% of its earnings in the form of a dividend. Penske Automotive Group has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of current recommendations for Penske Automotive Group and Lazydays, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penske Automotive Group 0 1 4 0 2.80
Lazydays 0 0 2 0 3.00

Penske Automotive Group currently has a consensus price target of $60.00, suggesting a potential upside of 39.21%. Lazydays has a consensus price target of $15.75, suggesting a potential upside of 129.59%. Given Lazydays’ stronger consensus rating and higher probable upside, analysts plainly believe Lazydays is more favorable than Penske Automotive Group.

Earnings & Valuation

This table compares Penske Automotive Group and Lazydays’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penske Automotive Group $21.39 billion 0.17 $613.30 million $4.31 10.00
Lazydays N/A N/A N/A N/A N/A

Penske Automotive Group has higher revenue and earnings than Lazydays.

Insider and Institutional Ownership

42.5% of Penske Automotive Group shares are held by institutional investors. Comparatively, 57.9% of Lazydays shares are held by institutional investors. 40.7% of Penske Automotive Group shares are held by company insiders. Comparatively, 15.6% of Lazydays shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Penske Automotive Group has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Lazydays has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.

Summary

Penske Automotive Group beats Lazydays on 9 of the 13 factors compared between the two stocks.

About Penske Automotive Group

Penske Automotive Group, Inc. operates as a transportation services company. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe; and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services primarily in Australia and New Zealand. The company engages in the sale of new and used motor vehicles of approximately 40 brands; and provision of vehicle services and collision repair services. In addition, it is involved in the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, and replacement and aftermarket automotive products. Further, the company distributes commercial vehicles and parts to a network of approximately 70 dealership locations, including 8 company-owned retail commercial vehicle dealerships. As of December 31, 2017, it operated 343 automotive retail franchises, of which 155 franchises are located in the United States; and 188 franchises are located outside of the United States primarily in the United Kingdom. The company also operated 20 dealerships locations of heavy and medium duty trucks, offering primarily Freightliner and Western Star branded trucks, as well as a range of used trucks, and services and parts. Penske Automotive Group, Inc. is headquartered in Bloomfield Hills, Michigan.

About Lazydays

Lazydays Holdings, Inc., through its subsidiaries, operates recreation vehicle (RV) dealerships in the United States. It provides various products, including RV sales, RV services, financing and insurance products, RV parts and accessories, RV rentals, third-party protection plans, and RV camping for RV owners. The company offers various new and used vehicles; onsite general RV maintenance and repair services; and collision repair services, as well as sells and installs various parts and accessories. It also operates a fleet of vehicles for rent; and Lazydays RV resort at Tampa, Florida. In addition, the company arranges financing for vehicle purchases through third-party finance sources; and offers various third-party protection plans and services to the purchasers of its RVs. It operates five dealership locations in Florida, Arizona, and Colorado. The company was founded in 1976 and is based in Seffner, Florida.

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