Penske Automotive Group (NYSE:PAG) vs. Zumiez (NASDAQ:ZUMZ) Head-To-Head Contrast

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Zumiez and Penske Automotive Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zumiez	0	3	0	0	2.00
Penske Automotive Group	0	5	5	0	2.50

Penske Automotive Group has a consensus target price of $211.14, suggesting a potential upside of 3.48%. Given Penske Automotive Group’s stronger consensus rating and higher probable upside, analysts clearly believe Penske Automotive Group is more favorable than Zumiez.

Institutional & Insider Ownership

95.5% of Zumiez shares are owned by institutional investors. Comparatively, 77.1% of Penske Automotive Group shares are owned by institutional investors. 24.3% of Zumiez shares are owned by company insiders. Comparatively, 52.9% of Penske Automotive Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zumiez	1.36%	3.71%	1.78%
Penske Automotive Group	2.81%	14.78%	4.72%

Risk & Volatility

Zumiez has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zumiez	$929.06 million	0.22	$13.38 million	$0.72	18.46
Penske Automotive Group	$31.81 billion	0.42	$935.40 million	$13.58	15.03

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

Summary

Penske Automotive Group beats Zumiez on 11 of the 14 factors compared between the two stocks.

About Zumiez

Zumiez Inc. operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. The company provides hardgoods, including skateboards, snowboards, bindings, components, and other equipment. It operates stores in the United States, Canada, Europe, and Australia under the names of Zumiez, Blue Tomato, and Fast Times. It operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.

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.