Analyzing Shift Technologies (NASDAQ:INSU) & Penske Automotive Group (NASDAQ:PAG)

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

Earnings and Valuation

This table compares Penske Automotive Group and Shift Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Penske Automotive Group $23.18 billion 0.19 $435.80 million $5.28 10.44
Shift Technologies N/A N/A $1.33 million N/A N/A

Penske Automotive Group has higher revenue and earnings than Shift Technologies.

Insider & Institutional Ownership

38.1% of Penske Automotive Group shares are owned by institutional investors. Comparatively, 57.6% of Shift Technologies shares are owned by institutional investors. 44.1% of Penske Automotive Group shares are owned by company insiders. Comparatively, 26.7% of Shift Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for Penske Automotive Group and Shift Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penske Automotive Group 0 3 5 0 2.63
Shift Technologies 0 0 1 0 3.00

Penske Automotive Group presently has a consensus price target of $51.00, suggesting a potential downside of 7.49%. Shift Technologies has a consensus price target of $20.00, suggesting a potential upside of 77.94%. Given Shift Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Shift Technologies is more favorable than Penske Automotive Group.

Volatility and Risk

Penske Automotive Group has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Shift Technologies has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Penske Automotive Group 1.53% 11.48% 2.32%
Shift Technologies N/A -6.01% -0.20%

Summary

Penske Automotive Group beats Shift Technologies on 8 of the 11 factors compared between the two stocks.

Penske Automotive Group Company Profile

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 also 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 9 company-owned retail commercial vehicle dealerships. As of December 31, 2018, it operated 345 automotive retail franchises, of which 154 franchises are located in the United States; and 191 franchises are located outside of the United States primarily in the United Kingdom. The company also operated 20 dealership 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.

Shift Technologies Company Profile

Shift Technologies, Inc. provides an online platform that allows people to buy and sell their new and used cars. The company offers sedans, hatchbacks, wagons, SUVs, vans, coupes, convertibles, and trucks. It also offers financing options. The company was founded in 2013 and is based in San Francisco, California with physical locations in San Francisco, Los Angeles, San Diego, and Sacramento, California; and Portland, Oregon.

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