Worksport (NASDAQ:WKSP – Get Free Report) and Penske Automotive Group (NYSE:PAG – Get Free Report) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.
Volatility & Risk
Worksport has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.
Profitability
This table compares Worksport and Penske Automotive Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Worksport | -165.61% | -92.59% | -64.71% |
| Penske Automotive Group | 3.10% | 17.80% | 5.51% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Worksport | 0 | 0 | 3 | 0 | 3.00 |
| Penske Automotive Group | 1 | 1 | 4 | 0 | 2.50 |
Worksport currently has a consensus target price of $14.00, indicating a potential upside of 268.42%. Penske Automotive Group has a consensus target price of $172.00, indicating a potential downside of 6.11%. Given Worksport’s stronger consensus rating and higher possible upside, analysts plainly believe Worksport is more favorable than Penske Automotive Group.
Earnings & Valuation
This table compares Worksport and Penske Automotive Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Worksport | $8.48 million | 2.33 | -$16.16 million | ($6.60) | -0.58 |
| Penske Automotive Group | $30.46 billion | 0.40 | $918.90 million | $14.20 | 12.90 |
Penske Automotive Group has higher revenue and earnings than Worksport. Worksport 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.
Institutional and Insider Ownership
16.1% of Worksport shares are held by institutional investors. Comparatively, 77.1% of Penske Automotive Group shares are held by institutional investors. 8.0% of Worksport 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 stock is poised for long-term growth.
Summary
Penske Automotive Group beats Worksport on 10 of the 14 factors compared between the two stocks.
About Worksport
Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.
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.
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