Critical Review: Lazydays (NASDAQ:GORV) versus Penske Automotive Group (NYSE:PAG)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lazydays and Penske Automotive Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lazydays	0	0	0	0	N/A
Penske Automotive Group	2	0	2	0	2.00

Penske Automotive Group has a consensus target price of $157.75, indicating a potential downside of 2.10%. Given Penske Automotive Group’s higher possible upside, analysts plainly believe Penske Automotive Group is more favorable than Lazydays.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lazydays	-12.48%	-16.47%	-3.86%
Penske Automotive Group	3.05%	19.82%	6.00%

Institutional & Insider Ownership

89.7% of Lazydays shares are held by institutional investors. Comparatively, 77.1% of Penske Automotive Group shares are held by institutional investors. 61.5% of Lazydays shares are held by insiders. Comparatively, 51.7% of Penske Automotive Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lazydays 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
Lazydays	$1.06 billion	0.03	-$110.27 million	($9.62)	-0.25
Penske Automotive Group	$29.53 billion	0.36	$1.05 billion	$14.38	11.21

Penske Automotive Group has higher revenue and earnings than Lazydays. Lazydays 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.

Risk and Volatility

Lazydays has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Summary

Penske Automotive Group beats Lazydays on 10 of the 13 factors compared between the two stocks.

About Lazydays

Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, 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.