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CAVA vs PAG

CAVA
CAVA Group, Inc.
BEARISH
Price
$95.68
Market Cap
$11.14B
Sector
Consumer Cyclical
AI Confidence
90%
PAG
Penske Automotive Group, Inc.
NEUTRAL
Price
$171.52
Market Cap
$11.28B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CAVA
177.19
PAG
12.23
Forward P/E
CAVA
132.05
PAG
12.02
P/B Ratio
CAVA
14.25
PAG
2.03
P/S Ratio
CAVA
9.44
PAG
0.35
EV/EBITDA
CAVA
83.72
PAG
13.32

Profitability

Gross Margin
CAVA
37.42%
PAG
16.4%
Operating Margin
CAVA
1.39%
PAG
3.35%
Profit Margin
CAVA
5.4%
PAG
2.94%
ROE
CAVA
8.64%
PAG
17.05%
ROA
CAVA
2.97%
PAG
4.62%

Growth

Revenue Growth
CAVA
20.9%
PAG
-3.1%
Earnings Growth
CAVA
-94.0%
PAG
-19.1%

Financial Health

Debt/Equity
CAVA
0.6
PAG
1.58
Current Ratio
CAVA
2.65
PAG
0.99
Quick Ratio
CAVA
2.53
PAG
0.18

Dividends

Dividend Yield
CAVA
--
PAG
3.47%
Payout Ratio
CAVA
0.0%
PAG
36.66%

AI Verdict

CAVA BEARISH

CAVA exhibits a stable but mediocre Piotroski F-Score of 4/9, while its valuation is completely detached from fundamental reality. With a Graham Number of $9.03 and an Intrinsic Value of $3.78, the current price of $95.68 represents a massive premium that is not supported by the recent -94% collapse in earnings growth. Despite strong revenue growth and a healthy balance sheet, the combination of an astronomical P/E ratio (177.19), bearish insider selling, and a technical trend score of 10/100 suggests a high probability of a significant correction.

Strengths
Strong revenue growth of 20.90% YoY
Excellent liquidity with a Current Ratio of 2.65
Manageable leverage with a Debt/Equity ratio of 0.60
Risks
Extreme valuation with a P/E ratio of 177.19
Severe earnings contraction (-94% YoY growth)
Significant divergence between current price and Graham/Intrinsic values
PAG NEUTRAL

PAG presents a stable but stagnating profile, characterized by a Piotroski F-Score of 6/9 indicating stable financial health. While the stock trades near its Graham Number ($163.41), it is significantly above its growth-based intrinsic value ($98.21), suggesting the market is pricing in stability rather than growth. Negative YoY revenue (-3.10%) and earnings (-19.10%) growth are primary concerns, though these are offset by a very low P/E ratio (12.23) relative to the sector average. The overall outlook is tempered by bearish technical trends and insider selling.

Strengths
Low valuation relative to sector (P/E 12.23 vs Sector Avg 31.83)
Strong Return on Equity (ROE) of 17.05%
Diversified revenue streams across Retail Automotive, Commercial Trucks, and PTS investment
Risks
Negative YoY earnings growth (-19.10%) and revenue growth (-3.10%)
Poor short-term liquidity indicated by a Quick Ratio of 0.18
Regulatory risk in the UK regarding EV mandates and emissions penalties

Compare Another Pair

CAVA vs PAG: Head-to-Head Comparison

This page compares CAVA Group, Inc. (CAVA) and Penske Automotive Group, Inc. (PAG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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