Chewy (NYSE:CHWY) and Penske Automotive Group (NYSE:PAG) Head to Head Analysis

Chewy (NYSE:CHWY) and Penske Automotive Group (NYSE:PAG) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chewy	2.09%	60.88%	7.83%
Penske Automotive Group	2.81%	14.78%	4.72%

Valuation and Earnings

This table compares Chewy and Penske Automotive Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chewy	$13.07 billion	0.66	$222.80 million	$0.66	32.30
Penske Automotive Group	$31.81 billion	0.44	$935.40 million	$13.58	15.63

Penske Automotive Group has higher revenue and earnings than Chewy. Penske Automotive Group is trading at a lower price-to-earnings ratio than Chewy, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

93.1% of Chewy shares are held by institutional investors. Comparatively, 77.1% of Penske Automotive Group shares are held by institutional investors. 0.3% of Chewy shares are held by company insiders. Comparatively, 52.9% of Penske Automotive Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Chewy has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Chewy and Penske Automotive Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	0	8	16	1	2.72
Penske Automotive Group	0	5	5	0	2.50

Chewy presently has a consensus price target of $30.45, suggesting a potential upside of 42.88%. Penske Automotive Group has a consensus price target of $211.43, suggesting a potential downside of 0.39%. Given Chewy’s stronger consensus rating and higher probable upside, analysts plainly believe Chewy is more favorable than Penske Automotive Group.

Summary

Chewy beats Penske Automotive Group on 10 of the 15 factors compared between the two stocks.

About Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.

About Penske Automotive Group

Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships worldwide. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates dealerships under franchise agreements with various automotive manufacturers and distributors. The company is also involved in the sale of new and used motor vehicles, maintenance and repair services, sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, collision repair services, and wholesale of parts. In addition, it operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as offers a range of used trucks. Further, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks and buses, and Dennis Eagle refuse collection vehicles with associated parts. Additionally, the company distributes diesel and gas engines, and power systems. Penske Automotive Group, Inc. was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan.