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PAG vs SAH
Which Stock Would AI Choose? Penske Automotive Group (PAG) vs. Sonic Automotive (SAH) Stock Comparison
Key Takeaways
- Penske Automotive Group (PAG) and Sonic Automotive (SAH) operate in the same U.S. auto retail industry, yet their business models diverge sharply in scale, geographic reach, and diversification.
- PAG generated approximately $31.8 billion in full-year 2025 revenue, roughly double Sonic's $15.2 billion, reflecting its global footprint and commercial truck operations.
- SAH has leaned into its EchoPark used-vehicle concept and Powersports segment as growth engines, while PAG has concentrated on premium luxury brands and commercial truck dealerships.
- Both companies face tariff-related uncertainty and affordability headwinds in the current market, but PAG offers greater geographic and segment diversification as a potential buffer.
- Dividend-focused investors may note PAG's 21 consecutive quarterly increases versus SAH's more modest but still growing payout.
- Analyst sentiment has been generally constructive on both names, though the risk-reward profiles differ meaningfully given their divergent capital allocation strategies and market exposures.
Introduction
When evaluating publicly traded automotive retailers, PAG (Penske Automotive Group) and SAH (Sonic Automotive) represent two distinct approaches to competing in the same industry. One is a diversified international powerhouse with significant commercial truck exposure; the other is a U.S.-focused retailer betting on a proprietary used-vehicle concept and a growing powersports franchise. This stock comparison is particularly relevant for investors seeking to understand how scale, geographic diversification, and segment strategy can influence relative performance within the auto retail sector. Whether you are a value-oriented investor evaluating margin profiles or a growth-focused trader assessing expansion catalysts, understanding the contrasts between these two companies can sharpen your perspective on the broader industry.
PAG Overview and Recent Performance
Penske Automotive Group is a diversified international transportation services company operating over 350 retail automotive franchises across the United States, the United Kingdom, Canada, Germany, Italy, and Japan. The company's business extends well beyond traditional auto retail through its Premier Truck Group, which operates 45 commercial truck locations across North America, and through a strategic equity stake in Penske Transportation Solutions. Premium and luxury brands such as BMW, Mercedes-Benz, Porsche, and Audi account for roughly 72% of retail automotive revenue, providing exposure to a generally more resilient customer demographic.
In recent market activity, PAG has demonstrated notable resilience. Full-year 2025 revenue came in at approximately $31.8 billion, with earnings per share (EPS) of $14.13. The company's service and parts operations—often viewed as a more stable, recurring revenue stream—delivered record performance, with same-store service and parts revenue increasing 5% in the most recently reported quarter. Penske has also been actively reshaping its dealership portfolio, divesting 23 non-strategic locations representing approximately $700 million in revenue while simultaneously acquiring Toyota and Lexus dealerships expected to add roughly $2 billion in annualized revenue. This deliberate pivot toward high-demand, inventory-constrained brands reflects a strategy aimed at pricing resilience. The company's balance sheet remains a competitive advantage: a leverage ratio of 1.5x and liquidity of approximately $1.6 billion provide ample flexibility. Meanwhile, the board authorized the 21st consecutive quarterly dividend increase, bringing the payout to $1.40 per share.
SAH Overview and Recent Performance
Sonic Automotive is one of the nation's largest automotive retailers, operating through three distinct segments: Franchised Dealerships, EchoPark, and Powersports. The company's franchised operations span new and used vehicle sales, parts and service (often called fixed operations), and finance and insurance (F&I) products. What sets Sonic apart is EchoPark, a standalone used-vehicle retail concept that operates independently from the franchised dealerships and targets a different customer demographic. The Powersports segment, while smaller, has been a bright spot in recent quarters.
SAH reported all-time record annual revenues of $15.2 billion for full-year 2025, up 7% year-over-year, alongside record gross profit of $2.4 billion, up 9%. The Franchised Dealerships Segment alone generated $12.9 billion in revenue, while EchoPark contributed $2.1 billion. Perhaps most notably, EchoPark swung from prior-period losses to record profitability, delivering full-year adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $49.2 million, up 78% year-over-year. The Powersports segment also hit records, with $202.9 million in annual revenue and adjusted EBITDA of $11.5 million. Sonic acquired four Jaguar Land Rover dealerships in California during the second quarter of 2025, expected to contribute approximately $500 million in annualized revenues and positioning the company as the largest JLR retailer in the United States. On the capital return front, Sonic repurchased 1.3 million shares in 2025 and raised its quarterly dividend to $0.38 per share, marking seven dividend increases in the past five years.
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Head-to-Head Comparison
Comparing PAG and SAH reveals several structural contrasts that shape their respective risk-reward profiles. First, scale and diversification set them apart: Penske's roughly $31.8 billion revenue base is more than double Sonic's $15.2 billion, and Penske's geographic reach across six countries—combined with its commercial truck division—provides a degree of cyclical insulation that Sonic's predominantly U.S. footprint cannot replicate. Second, growth strategy differs materially. Sonic has invested heavily in EchoPark, a used-vehicle concept targeting a distinct value-conscious consumer, and has demonstrated an ability to pivot that segment toward profitability. Penske, by contrast, has doubled down on premium brands and the commercial truck ecosystem, where parts and service revenue creates a recurring income stream less tied to vehicle sales cycles.
Margin profiles and operational efficiency also warrant attention. Sonic's Franchised Dealerships Segment has driven strong same-store F&I (finance and insurance) gross profit, with per-unit figures reaching $2,551 in 2025, a 7% increase year-over-year. Penske's overall gross margin of 16.9% reflects the benefit of its premium brand mix, but SG&A (Selling, General, and Administrative) expenses as a percentage of gross profit rose to 74.3% in the most recent quarter, raising questions about near-term cost discipline. On the balance sheet side, Penske's leverage ratio of 1.5x compares favorably to the broader industry, while Sonic carries a somewhat higher debt load relative to its size. Tariff exposure is a shared concern, but Penske's international diversification may partially mitigate U.S.-specific policy risk, whereas Sonic's domestic concentration leaves it more directly exposed. Finally, capital returns differ: Penske offers a substantially higher dividend yield supported by 21 consecutive quarterly increases, while Sonic's relatively smaller dividend is accompanied by aggressive share repurchases.
Tickeron AI Verdict
Based on observable trend data, relative positioning, and diversification characteristics, Tickeron's AI analytical framework would likely tilt in favor of PAG (Penske Automotive Group) under current market conditions. The reasoning is probabilistic rather than definitive: PAG's multi-pronged business model—spanning premium automotive retail, commercial trucks, and international markets—offers multiple levers for earnings stability that a purely U.S.-focused auto retailer may lack. The consistent dividend growth track record, fortress balance sheet, and strategic dealership portfolio rotation toward high-demand brands further support a favorable trend consistency score. That said, SAH's EchoPark turnaround and Powersports momentum represent legitimate catalysts that could shift the relative attractiveness if sustained over multiple quarters. In any stock comparison, the "right" answer depends on an investor's time horizon, risk tolerance, and conviction in specific growth narratives—but from a pure trend and stability standpoint, PAG currently presents the more balanced profile.
Disclaimer
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To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is PAG is a StrongBuy and SAH is a StrongBuy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
PAG’s FA Score shows that 2 FA rating(s) are green whileSAH’s FA Score has 1 green FA rating(s).
- PAG’s FA Score: 2 green, 3 red.
- SAH’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
PAG’s TA Score shows that 3 TA indicator(s) are bullish while SAH’s TA Score has 4 bullish TA indicator(s).
- PAG’s TA Score: 3 bullish, 5 bearish.
- SAH’s TA Score: 4 bullish, 6 bearish.
Price Growth
PAG (@Automotive Aftermarket) experienced а +1.05% price change this week, while SAH (@Automotive Aftermarket) price change was -6.66% for the same time period.
The average weekly price growth across all stocks in the @Automotive Aftermarket industry was +1.26%. For the same industry, the average monthly price growth was +0.83%, and the average quarterly price growth was -8.39%.
Reported Earning Dates
PAG is expected to report earnings on Oct 28, 2026.
SAH is expected to report earnings on Oct 22, 2026.
Industries' Descriptions
@Automotive Aftermarket (+1.26% weekly)The Automotive Aftermarket consists of the manufacturing, remanufacturing, distribution, retailing, and installation of vehicle parts and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The aftermarket parts many not be manufactured by the OEM. According to a Technavio study, the US automotive parts aftermarket size is estimated to grow by USD 24.33 billion during 2018-2022 (CAGR 3%). Like many other industries, the automotive aftermarket is also being intensely penetrated by the digital boom. The online auto parts sales market is predicted to exceed $13B by 2020 (according to a study by Mirakl).
| PAG | SAH | PAG / SAH | |
| Capitalization | 14.4B | 2.56B | 564% |
| EBITDA | 1.69B | 666M | 253% |
| Gain YTD | 40.562 | 29.530 | 137% |
| P/E Ratio | 15.98 | 12.87 | 124% |
| Revenue | 32.2B | 15.5B | 208% |
| Total Cash | 69.5M | 19.2M | 362% |
| Total Debt | 9.25B | 4.67B | 198% |
PAG | SAH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 44 | 80 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 68 Overvalued | 14 Undervalued | |
PROFIT vs RISK RATING 1..100 | 8 | 45 | |
SMR RATING 1..100 | 55 | 45 | |
PRICE GROWTH RATING 1..100 | 40 | 51 | |
P/E GROWTH RATING 1..100 | 27 | 82 | |
SEASONALITY SCORE 1..100 | 85 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
SAH's Valuation (14) in the Specialty Stores industry is somewhat better than the same rating for PAG (68). This means that SAH’s stock grew somewhat faster than PAG’s over the last 12 months.
PAG's Profit vs Risk Rating (8) in the Specialty Stores industry is somewhat better than the same rating for SAH (45). This means that PAG’s stock grew somewhat faster than SAH’s over the last 12 months.
SAH's SMR Rating (45) in the Specialty Stores industry is in the same range as PAG (55). This means that SAH’s stock grew similarly to PAG’s over the last 12 months.
PAG's Price Growth Rating (40) in the Specialty Stores industry is in the same range as SAH (51). This means that PAG’s stock grew similarly to SAH’s over the last 12 months.
PAG's P/E Growth Rating (27) in the Specialty Stores industry is somewhat better than the same rating for SAH (82). This means that PAG’s stock grew somewhat faster than SAH’s over the last 12 months.
| PAG | SAH | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 72% | 2 days ago 71% |
| Stochastic ODDS (%) | 2 days ago 67% | 2 days ago 78% |
| Momentum ODDS (%) | 2 days ago 62% | 2 days ago 71% |
| MACD ODDS (%) | 2 days ago 52% | 2 days ago 73% |
| TrendWeek ODDS (%) | 2 days ago 68% | 2 days ago 69% |
| TrendMonth ODDS (%) | 2 days ago 62% | 2 days ago 69% |
| Advances ODDS (%) | 2 days ago 71% | 3 days ago 72% |
| Declines ODDS (%) | 15 days ago 59% | 8 days ago 70% |
| BollingerBands ODDS (%) | 2 days ago 64% | 2 days ago 85% |
| Aroon ODDS (%) | 2 days ago 55% | 2 days ago 65% |
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PAG and
Correlation & Price change
A.I.dvisor indicates that over the last year, PAG has been closely correlated with ABG. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if PAG jumps, then ABG could also see price increases.
SAH and
Correlation & Price change
A.I.dvisor indicates that over the last year, SAH has been closely correlated with GPI. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if SAH jumps, then GPI could also see price increases.