Acacia Diversified (OTCMKTS:ACCA) vs. Penske Automotive Group (NYSE:PAG) Critical Contrast

Penske Automotive Group (NYSE:PAG) and Acacia Diversified (OTCMKTS:ACCA) are both retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Penske Automotive Group	3.10%	17.80%	5.51%
Acacia Diversified	N/A	N/A	N/A

Institutional and Insider Ownership

77.1% of Penske Automotive Group shares are owned by institutional investors. 51.7% of Penske Automotive Group shares are owned by insiders. Comparatively, 50.2% of Acacia Diversified shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Penske Automotive Group and Acacia Diversified, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penske Automotive Group	1	1	4	0	2.50
Acacia Diversified	0	0	0	0	0.00

Penske Automotive Group currently has a consensus target price of $175.00, suggesting a potential upside of 6.40%. Given Penske Automotive Group’s stronger consensus rating and higher probable upside, research analysts plainly believe Penske Automotive Group is more favorable than Acacia Diversified.

Earnings and Valuation

This table compares Penske Automotive Group and Acacia Diversified”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penske Automotive Group	$30.46 billion	0.36	$918.90 million	$14.20	11.58
Acacia Diversified	N/A	N/A	N/A	N/A	N/A

Penske Automotive Group has higher revenue and earnings than Acacia Diversified.

Summary

Penske Automotive Group beats Acacia Diversified on 9 of the 9 factors compared between the two stocks.

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.

About Acacia Diversified

Acacia Diversified Holdings, Inc. engages in the extraction and processing of high-CBD/low-THC content medical grade hemp oils from medical hemp plants in the United States. The company is also involved in the research and development of botanicals endocannabinoid nutraceuticals product line; and retail and wholesale distribution of medicinal hemp products and dietary supplements. In addition, it offers consumer products under the EUFLORIA brand name for the distribution channels. The company was formerly known as Acacia Automotive, Inc. and changed its name to Acacia Diversified Holdings, Inc. in October 2012. Acacia Diversified Holdings, Inc. was incorporated in 1984 and is based in Clearwater, Florida.