Head to Head Analysis: Chewy (NYSE:CHWY) & Penske Automotive Group (NYSE:PAG)

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

Valuation and Earnings

This table compares Chewy 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
Chewy	N/A	N/A	N/A	$0.66	32.63
Penske Automotive Group	N/A	N/A	N/A	$13.58	15.62

Penske Automotive Group is trading at a lower price-to-earnings ratio than Chewy, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chewy	N/A	N/A	N/A
Penske Automotive Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Chewy and Penske Automotive Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	0	8	16	1	2.72
Penske Automotive Group	0	5	5	0	2.50

Chewy currently has a consensus price target of $30.45, indicating a potential upside of 41.43%. Penske Automotive Group has a consensus price target of $211.43, indicating a potential downside of 0.34%. Given Chewy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Chewy is more favorable than Penske Automotive Group.

Institutional and Insider Ownership

93.1% of Chewy shares are held by institutional investors. Comparatively, 77.1% of Penske Automotive Group shares are held by institutional investors. 0.3% of Chewy shares are held by insiders. Comparatively, 52.9% of Penske Automotive Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Chewy beats Penske Automotive Group on 5 of the 7 factors compared between the two stocks.

About Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.

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.