Boot Barn (NYSE:BOOT – Get Free Report) and Penske Automotive Group (NYSE:PAG – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
77.1% of Penske Automotive Group shares are held by institutional investors. 0.7% of Boot Barn 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Boot Barn and Penske Automotive Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Boot Barn | $2.34 billion | 1.55 | $225.88 million | $7.90 | 15.21 |
| Penske Automotive Group | $31.81 billion | 0.44 | $935.40 million | $13.58 | 15.61 |
Penske Automotive Group has higher revenue and earnings than Boot Barn. Boot Barn is trading at a lower price-to-earnings ratio than Penske Automotive Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Boot Barn pays an annual dividend of $0.50 per share and has a dividend yield of 0.4%. Penske Automotive Group pays an annual dividend of $5.76 per share and has a dividend yield of 2.7%. Boot Barn pays out 6.3% of its earnings in the form of a dividend. Penske Automotive Group pays out 42.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Penske Automotive Group has raised its dividend for 6 consecutive years. Penske Automotive Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of recent recommendations for Boot Barn and Penske Automotive Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Boot Barn | 0 | 1 | 12 | 1 | 3.00 |
| Penske Automotive Group | 0 | 5 | 5 | 0 | 2.50 |
Boot Barn currently has a consensus price target of $211.25, suggesting a potential upside of 75.84%. Penske Automotive Group has a consensus price target of $208.29, suggesting a potential downside of 1.78%. Given Boot Barn’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Boot Barn is more favorable than Penske Automotive Group.
Profitability
This table compares Boot Barn and Penske Automotive Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Boot Barn | 10.35% | 18.78% | 10.03% |
| Penske Automotive Group | 2.81% | 14.78% | 4.72% |
Volatility & Risk
Boot Barn has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
Summary
Boot Barn beats Penske Automotive Group on 10 of the 18 factors compared between the two stocks.
About Boot Barn
Boot Barn Holdings, Inc., a lifestyle retail chain, operates specialty retail stores in the United States. The company's specialty retail stores offer western and work-related footwear, apparel, and accessories for men, women, and kids. It offers boots, shirts, jackets, hats, belts and belt buckles, handbags, western-style jewelry, rugged footwear, outerwear, overalls, denim, and flame-resistant and high-visibility clothing. The company also provides gifts and home merchandise. The company also sells its products through e-commerce websites, including bootbarn.com; sheplers.com; and countryoutfitter.com. The company was formerly known as WW Top Investment Corporation and changed its name to Boot Barn Holdings, Inc. in June 2014. Boot Barn Holdings, Inc. was founded in 1978 and is based in Irvine, California.
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.
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