Penske Automotive Group (NYSE:PAG) and Renren (NYSE:RENN) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Penske Automotive Group has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Renren has a beta of 1.8, meaning that its share price is 80% more volatile than the S&P 500.
35.8% of Penske Automotive Group shares are owned by institutional investors. Comparatively, 3.3% of Renren shares are owned by institutional investors. 44.3% of Penske Automotive Group shares are owned by insiders. Comparatively, 42.4% of Renren shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and price targets for Penske Automotive Group and Renren, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Penske Automotive Group||0||0||4||0||3.00|
Penske Automotive Group currently has a consensus target price of $88.33, suggesting a potential upside of 7.01%. Given Penske Automotive Group’s higher possible upside, equities research analysts plainly believe Penske Automotive Group is more favorable than Renren.
This table compares Penske Automotive Group and Renren’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Penske Automotive Group||3.18%||20.79%||5.03%|
Earnings and Valuation
This table compares Penske Automotive Group and Renren’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Penske Automotive Group||$20.44 billion||0.33||$543.60 million||$6.64||12.43|
|Renren||$18.11 million||14.59||-$19.22 million||N/A||N/A|
Penske Automotive Group has higher revenue and earnings than Renren.
Penske Automotive Group beats Renren on 9 of the 11 factors compared between the two stocks.
About Penske Automotive Group
Penske Automotive Group, Inc., a diversified transportation services company, operates automotive and commercial truck dealerships. 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 engages in the sale of new and used motor vehicles, and related products and services comprise vehicle and collision repair services, as well as placement of finance and lease contracts, third-party insurance products, and other aftermarket products; and wholesale of parts. It also operates a heavy and medium duty truck dealership, which offers Freightliner and Western Star branded trucks, as well as a range of used trucks, and maintenance and repair services. In addition, it imports and distributes Western Star heavy-duty trucks, MAN heavy and medium duty trucks, buses, and Dennis Eagle refuse collection vehicles with associated parts in Australia, New Zealand, and portions of the Pacific. Further, the company distributes diesel and gas engines, and power systems. The company operates 304 retail automotive franchises, including 142 franchises located in the United States and 162 franchises located outside of the United States; 17 used vehicle supercenters in the United States and the United Kingdom; and 25 commercial truck dealerships in Texas, Oklahoma, Tennessee, Georgia, Utah, and Idaho, the United States, as well as Canada. Penske Automotive Group, Inc. was incorporated in 1990 and is headquartered in Bloomfield Hills, Michigan.
Renren Inc. engages in the software as a service business in the People's Republic of China. The company develops Chime, a software as a service platform that offers lead generation and customer relationship management solutions for real estate professionals. It also provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.
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