Head to Head Comparison: Penske Automotive Group (NYSE:PAG) & Boot Barn (NYSE:BOOT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Penske Automotive Group	2.81%	14.78%	4.72%
Boot Barn	10.35%	18.78%	10.03%

Earnings and Valuation

This table compares Penske Automotive Group and Boot Barn”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penske Automotive Group	$32.20 billion	0.43	$935.40 million	$13.58	15.62
Boot Barn	$2.25 billion	1.56	$225.88 million	$7.90	14.71

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.

Insider and Institutional Ownership

77.1% of Penske Automotive Group shares are owned by institutional investors. 52.9% of Penske Automotive Group shares are owned by company insiders. Comparatively, 0.7% of Boot Barn shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Penske Automotive Group has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Boot Barn has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Penske Automotive Group and Boot Barn, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penske Automotive Group	0	5	5	0	2.50
Boot Barn	0	1	13	1	3.00

Penske Automotive Group presently has a consensus price target of $211.43, indicating a potential downside of 0.30%. Boot Barn has a consensus price target of $206.54, indicating a potential upside of 77.77%. Given Boot Barn’s stronger consensus rating and higher possible upside, analysts plainly believe Boot Barn is more favorable than Penske Automotive Group.

Summary

Boot Barn beats Penske Automotive Group on 9 of the 15 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 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.

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.