Analyzing Avis Budget Group (CAR) & Its Peers

Avis Budget Group (NASDAQ:CAR) is one of 45 public companies in the “TRANS – SERVICES” industry, but how does it compare to its competitors? We will compare Avis Budget Group to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

96.4% of Avis Budget Group shares are owned by institutional investors. Comparatively, 55.5% of shares of all “TRANS – SERVICES” companies are owned by institutional investors. 52.8% of Avis Budget Group shares are owned by insiders. Comparatively, 23.5% of shares of all “TRANS – SERVICES” companies are owned 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.

Earnings & Valuation

This table compares Avis Budget Group and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Avis Budget Group	$11.79 billion	-$1.82 billion	-2.77
Avis Budget Group Competitors	$6.81 billion	$184.70 million	13.73

Avis Budget Group has higher revenue, but lower earnings than its competitors. Avis Budget Group is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Avis Budget Group and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avis Budget Group	0	4	2	0	2.33
Avis Budget Group Competitors	364	1330	1503	88	2.40

Avis Budget Group currently has a consensus target price of $117.00, indicating a potential downside of 32.84%. As a group, “TRANS – SERVICES” companies have a potential upside of 5.64%. Given Avis Budget Group’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Avis Budget Group has less favorable growth aspects than its competitors.

Profitability

This table compares Avis Budget Group and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avis Budget Group	-18.96%	-14.74%	-0.84%
Avis Budget Group Competitors	2.85%	-6.69%	2.79%

Volatility and Risk

Avis Budget Group has a beta of 2.11, indicating that its share price is 111% more volatile than the S&P 500. Comparatively, Avis Budget Group’s competitors have a beta of 0.83, indicating that their average share price is 17% less volatile than the S&P 500.

Summary

Avis Budget Group competitors beat Avis Budget Group on 9 of the 13 factors compared.

About Avis Budget Group

Avis Budget Group, Inc. engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean. The International segment is involved in the vehicle rental and car sharing operations in Europe, the Middle East, Africa, Asia, and Australasia. The company was founded in 1946 and is headquartered in Parsippany, NJ.