AutoNation vs Penske Automotive Group
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KIRA’s take AI analyst
I put AutoNation and Penske Automotive Group side by side, using each one’s latest annual report. Here is what stands out:
- Penske Automotive Group is the larger business, with $31.8B of revenue in fiscal 2025 against $27.6B for AutoNation.
- AutoNation grew revenue faster (3.2%, against −0.2%).
- Penske Automotive Group turned more of its sales into free cash flow (2.1% FCF margin, against −0.7%).
- AutoNation earned a higher return on the capital invested in it (14.7%, against 12.8%).
- Investors pay more for each dollar of Penske Automotive Group’s earnings: a P/E of 15.4x against 7.4x for AutoNation.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
AutoNation
AN
6/10
Revenue growthGross marginOperating marginReturn on capitalReturn on equityShare count change
Penske Automotive Group
PAG
3/10
5-year growthNet marginFCF margin
Side by side
Best in the row
| Latest fiscal year | AN FY25 | PAG FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $13.9B |
| Revenue | $27.6B | $31.8B |
| Free cash flow | −$198M | $651M |
| Net income | $649M | $935M |
| Growth | ||
| Revenue growth | 3.2% | −0.2% |
| 5-year growth | 6.3% | 9.2% |
| Share count change | −6.9% | −1.0% |
| Profitability | ||
| Gross margin | 17.9% | 16.4% |
| Operating margin | 4.5% | 4.0% |
| Net margin | 2.4% | 2.9% |
| FCF margin | −0.7% | 2.1% |
| Return on capital | 14.7% | 12.8% |
| Return on equity | 27.1% | 17.1% |
| Balance sheet | ||
| Net debt | $3.9B | $2.1B |
| Net debt / EBITDA | — | 1.5x |
| Dividends and buybacks | $792M | $503M |
| Valuation & quality | ||
| P/E | 7.4x | 15.4x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.