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ABG vs. PAG: A Head-to-Head Stock Comparison

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Here’s a clear look at ABG and PAG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

PAG’s market capitalization of 12.08 billion USD is significantly greater than ABG’s 5.09 billion USD, highlighting its more substantial market valuation.

With betas of 0.96 for ABG and 0.90 for PAG, both stocks show similar sensitivity to overall market movements.

SymbolABGPAG
Company NameAsbury Automotive Group, Inc.Penske Automotive Group, Inc.
CountryUSUS
SectorConsumer CyclicalConsumer Cyclical
IndustryAuto - DealershipsAuto - Dealerships
CEODavid W. HultRoger S. Penske
Price258.66 USD182.56 USD
Market Cap5.09 billion USD12.08 billion USD
Beta0.960.90
ExchangeNYSENYSE
IPO DateMarch 21, 2002October 23, 1996
ADRNoNo

Historical Performance

This chart compares the performance of ABG and PAG by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ABG vs. PAG: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ABG

12.02%

Auto - Dealerships Industry

Max
28.79%
Q3
15.58%
Median
9.02%
Q1
-10.07%
Min
-35.39%

ABG’s Return on Equity of 12.02% is on par with the norm for the Auto - Dealerships industry, indicating its profitability relative to shareholder equity is typical for the sector.

PAG

18.26%

Auto - Dealerships Industry

Max
28.79%
Q3
15.58%
Median
9.02%
Q1
-10.07%
Min
-35.39%

In the upper quartile for the Auto - Dealerships industry, PAG’s Return on Equity of 18.26% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ABG vs. PAG: A comparison of their ROE against the Auto - Dealerships industry benchmark.

Return on Invested Capital

ABG

6.56%

Auto - Dealerships Industry

Max
14.67%
Q3
8.34%
Median
6.56%
Q1
0.65%
Min
-4.67%

ABG’s Return on Invested Capital of 6.56% is in line with the norm for the Auto - Dealerships industry, reflecting a standard level of efficiency in generating profits from its capital base.

PAG

8.80%

Auto - Dealerships Industry

Max
14.67%
Q3
8.34%
Median
6.56%
Q1
0.65%
Min
-4.67%

In the upper quartile for the Auto - Dealerships industry, PAG’s Return on Invested Capital of 8.80% signifies a highly effective use of its capital to generate profits when compared to its peers.

ABG vs. PAG: A comparison of their ROIC against the Auto - Dealerships industry benchmark.

Net Profit Margin

ABG

2.42%

Auto - Dealerships Industry

Max
7.00%
Q3
2.95%
Median
2.18%
Q1
-0.32%
Min
-0.47%

ABG’s Net Profit Margin of 2.42% is aligned with the median group of its peers in the Auto - Dealerships industry. This indicates its ability to convert revenue into profit is typical for the sector.

PAG

3.10%

Auto - Dealerships Industry

Max
7.00%
Q3
2.95%
Median
2.18%
Q1
-0.32%
Min
-0.47%

A Net Profit Margin of 3.10% places PAG in the upper quartile for the Auto - Dealerships industry, signifying strong profitability and more effective cost management than most of its peers.

ABG vs. PAG: A comparison of their Net Profit Margin against the Auto - Dealerships industry benchmark.

Operating Profit Margin

ABG

4.71%

Auto - Dealerships Industry

Max
8.99%
Q3
5.53%
Median
4.28%
Q1
-1.91%
Min
-11.10%

ABG’s Operating Profit Margin of 4.71% is around the midpoint for the Auto - Dealerships industry, indicating that its efficiency in managing core business operations is typical for the sector.

PAG

4.26%

Auto - Dealerships Industry

Max
8.99%
Q3
5.53%
Median
4.28%
Q1
-1.91%
Min
-11.10%

PAG’s Operating Profit Margin of 4.26% is around the midpoint for the Auto - Dealerships industry, indicating that its efficiency in managing core business operations is typical for the sector.

ABG vs. PAG: A comparison of their Operating Margin against the Auto - Dealerships industry benchmark.

Profitability at a Glance

SymbolABGPAG
Return on Equity (TTM)12.02%18.26%
Return on Assets (TTM)4.06%5.60%
Return on Invested Capital (TTM)6.56%8.80%
Net Profit Margin (TTM)2.42%3.10%
Operating Profit Margin (TTM)4.71%4.26%
Gross Profit Margin (TTM)16.95%16.45%

Financial Strength

Current Ratio

ABG

1.25

Auto - Dealerships Industry

Max
1.65
Q3
1.54
Median
1.33
Q1
1.07
Min
0.77

ABG’s Current Ratio of 1.25 aligns with the median group of the Auto - Dealerships industry, indicating that its short-term liquidity is in line with its sector peers.

PAG

0.90

Auto - Dealerships Industry

Max
1.65
Q3
1.54
Median
1.33
Q1
1.07
Min
0.77

PAG’s Current Ratio of 0.90 falls into the lower quartile for the Auto - Dealerships industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ABG vs. PAG: A comparison of their Current Ratio against the Auto - Dealerships industry benchmark.

Debt-to-Equity Ratio

ABG

1.33

Auto - Dealerships Industry

Max
4.90
Q3
3.44
Median
1.76
Q1
0.50
Min
0.01

ABG’s Debt-to-Equity Ratio of 1.33 is typical for the Auto - Dealerships industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

PAG

0.77

Auto - Dealerships Industry

Max
4.90
Q3
3.44
Median
1.76
Q1
0.50
Min
0.01

PAG’s Debt-to-Equity Ratio of 0.77 is typical for the Auto - Dealerships industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ABG vs. PAG: A comparison of their D/E Ratio against the Auto - Dealerships industry benchmark.

Interest Coverage Ratio

ABG

3.04

Auto - Dealerships Industry

Max
6.71
Q3
3.13
Median
1.99
Q1
0.03
Min
-1.62

ABG’s Interest Coverage Ratio of 3.04 is positioned comfortably within the norm for the Auto - Dealerships industry, indicating a standard and healthy capacity to cover its interest payments.

PAG

6.17

Auto - Dealerships Industry

Max
6.71
Q3
3.13
Median
1.99
Q1
0.03
Min
-1.62

PAG’s Interest Coverage Ratio of 6.17 is in the upper quartile for the Auto - Dealerships industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ABG vs. PAG: A comparison of their Interest Coverage against the Auto - Dealerships industry benchmark.

Financial Strength at a Glance

SymbolABGPAG
Current Ratio (TTM)1.250.90
Quick Ratio (TTM)0.550.23
Debt-to-Equity Ratio (TTM)1.330.77
Debt-to-Asset Ratio (TTM)0.470.24
Net Debt-to-EBITDA Ratio (TTM)5.352.60
Interest Coverage Ratio (TTM)3.046.17

Growth

The following charts compare key year-over-year (YoY) growth metrics for ABG and PAG. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ABG vs. PAG: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ABG vs. PAG: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ABG vs. PAG: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ABG

0.00%

Auto - Dealerships Industry

Max
2.73%
Q3
0.59%
Median
0.00%
Q1
0.00%
Min
0.00%

ABG currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

PAG

2.60%

Auto - Dealerships Industry

Max
2.73%
Q3
0.59%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 2.60%, PAG offers a more attractive income stream than most of its peers in the Auto - Dealerships industry, signaling a strong commitment to shareholder returns.

ABG vs. PAG: A comparison of their Dividend Yield against the Auto - Dealerships industry benchmark.

Dividend Payout Ratio

ABG

0.00%

Auto - Dealerships Industry

Max
34.61%
Q3
9.34%
Median
0.00%
Q1
0.00%
Min
0.00%

ABG has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

PAG

31.39%

Auto - Dealerships Industry

Max
34.61%
Q3
9.34%
Median
0.00%
Q1
0.00%
Min
0.00%

PAG’s Dividend Payout Ratio of 31.39% is in the upper quartile for the Auto - Dealerships industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

ABG vs. PAG: A comparison of their Payout Ratio against the Auto - Dealerships industry benchmark.

Dividend at a Glance

SymbolABGPAG
Dividend Yield (TTM)0.00%2.60%
Dividend Payout Ratio (TTM)0.00%31.39%

Valuation

Price-to-Earnings Ratio

ABG

12.21

Auto - Dealerships Industry

Max
31.48
Q3
20.01
Median
14.07
Q1
11.52
Min
10.40

ABG’s P/E Ratio of 12.21 is within the middle range for the Auto - Dealerships industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

PAG

12.86

Auto - Dealerships Industry

Max
31.48
Q3
20.01
Median
14.07
Q1
11.52
Min
10.40

PAG’s P/E Ratio of 12.86 is within the middle range for the Auto - Dealerships industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ABG vs. PAG: A comparison of their P/E Ratio against the Auto - Dealerships industry benchmark.

Forward P/E to Growth Ratio

ABG

2.33

Auto - Dealerships Industry

Max
3.22
Q3
2.32
Median
1.63
Q1
0.62
Min
0.46

A Forward PEG Ratio of 2.33 places ABG in the upper quartile for the Auto - Dealerships industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

PAG

3.39

Auto - Dealerships Industry

Max
3.22
Q3
2.32
Median
1.63
Q1
0.62
Min
0.46

PAG’s Forward PEG Ratio of 3.39 is exceptionally high for the Auto - Dealerships industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.

ABG vs. PAG: A comparison of their Forward PEG Ratio against the Auto - Dealerships industry benchmark.

Price-to-Sales Ratio

ABG

0.30

Auto - Dealerships Industry

Max
3.42
Q3
1.74
Median
0.45
Q1
0.28
Min
0.19

ABG’s P/S Ratio of 0.30 aligns with the market consensus for the Auto - Dealerships industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

PAG

0.39

Auto - Dealerships Industry

Max
3.42
Q3
1.74
Median
0.45
Q1
0.28
Min
0.19

PAG’s P/S Ratio of 0.39 aligns with the market consensus for the Auto - Dealerships industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ABG vs. PAG: A comparison of their P/S Ratio against the Auto - Dealerships industry benchmark.

Price-to-Book Ratio

ABG

1.40

Auto - Dealerships Industry

Max
6.16
Q3
3.70
Median
1.91
Q1
1.56
Min
0.81

ABG’s P/B Ratio of 1.40 is in the lower quartile for the Auto - Dealerships industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

PAG

2.26

Auto - Dealerships Industry

Max
6.16
Q3
3.70
Median
1.91
Q1
1.56
Min
0.81

PAG’s P/B Ratio of 2.26 is within the conventional range for the Auto - Dealerships industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

ABG vs. PAG: A comparison of their P/B Ratio against the Auto - Dealerships industry benchmark.

Valuation at a Glance

SymbolABGPAG
Price-to-Earnings Ratio (P/E, TTM)12.2112.86
Forward PEG Ratio (TTM)2.333.39
Price-to-Sales Ratio (P/S, TTM)0.300.39
Price-to-Book Ratio (P/B, TTM)1.402.26
Price-to-Free Cash Flow Ratio (P/FCF, TTM)8.6926.03
EV-to-EBITDA (TTM)11.1410.42
EV-to-Sales (TTM)0.570.53