Kaixin Auto (NASDAQ:KXIN) and Penske Automotive Group (NYSE:PAG) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Penske Automotive Group pays an annual dividend of $1.56 per share and has a dividend yield of 3.4%. Kaixin Auto does not pay a dividend. Penske Automotive Group pays out 29.2% of its earnings in the form of a dividend. Penske Automotive Group has increased its dividend for 8 consecutive years.
Insider & Institutional Ownership
31.9% of Kaixin Auto shares are held by institutional investors. Comparatively, 44.1% of Penske Automotive Group shares are held by institutional investors. 20.8% of Kaixin Auto shares are held by insiders. Comparatively, 42.6% of Penske Automotive Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Kaixin Auto and Penske Automotive Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Penske Automotive Group||2.05%||17.38%||3.98%|
Valuation & Earnings
This table compares Kaixin Auto and Penske Automotive Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kaixin Auto||N/A||N/A||$2.26 million||N/A||N/A|
|Penske Automotive Group||$22.79 billion||0.17||$471.00 million||$5.34||8.72|
Penske Automotive Group has higher revenue and earnings than Kaixin Auto.
This is a breakdown of recent ratings and target prices for Kaixin Auto and Penske Automotive Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Penske Automotive Group||0||2||3||0||2.60|
Penske Automotive Group has a consensus price target of $55.60, suggesting a potential upside of 19.44%. Given Penske Automotive Group’s higher possible upside, analysts clearly believe Penske Automotive Group is more favorable than Kaixin Auto.
Risk and Volatility
Kaixin Auto has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.
Penske Automotive Group beats Kaixin Auto on 11 of the 13 factors compared between the two stocks.
Kaixin Auto Company Profile
Kaixin Auto Holdings operates as a used car dealership in the People's Republic of China. As of December 31, 2018, the company had 14 dealerships. It also provides financing channels to its customers through its partnership with financial institutions; and value-added services to its customers, including insurance, extended warranties, and after-sales services The company was founded in 2015 and is based in Beijing, the People's Republic of China.
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.
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