Avis Budget Group (NASDAQ:CAR – Get Free Report) and DHL Group (OTCMKTS:DHLGY – Get Free Report) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Institutional and Insider Ownership
96.4% of Avis Budget Group shares are owned by institutional investors. 52.8% of Avis Budget Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Avis Budget Group has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, DHL Group has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Avis Budget Group | -17.95% | N/A | -0.48% |
| DHL Group | 4.24% | 15.44% | 5.07% |
Valuation & Earnings
This table compares Avis Budget Group and DHL Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avis Budget Group | $11.79 billion | 0.35 | -$1.82 billion | ($59.80) | -1.98 |
| DHL Group | $91.11 billion | 0.69 | $3.61 billion | $3.43 | 17.04 |
DHL Group has higher revenue and earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than DHL Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for Avis Budget Group and DHL Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avis Budget Group | 3 | 5 | 1 | 0 | 1.78 |
| DHL Group | 0 | 6 | 1 | 1 | 2.38 |
Avis Budget Group currently has a consensus target price of $137.57, indicating a potential upside of 16.24%. Given Avis Budget Group’s higher probable upside, analysts plainly believe Avis Budget Group is more favorable than DHL Group.
Summary
DHL Group beats Avis Budget Group on 10 of the 14 factors compared between the two stocks.
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.
About DHL Group
Deutsche Post AG operates as a mail and logistics company in Germany, rest of Europe, the Americas, the Asia Pacific, the Middle East, and Africa. The company operates through five segments: Express; Global Forwarding, Freight; Supply Chain; eCommerce Solutions; and Post & Parcel Germany. The Express segment offers time-definite courier and express services to business and private customers. The Global Forwarding, Freight segment provides air, ocean, and overland freight forwarding services; and offers multimodal and sector-specific solutions. This segment's business model is based on brokering transport services between customers and freight carriers. The Supply Chain segment delivers customized supply chain solutions to its customers based on modular components, including warehousing and transport services; and value-added services, such as e-fulfilment, omnichannel solutions and returns management, lead logistics partner, real estate solutions, service logistics, and packaging solutions for various industrial sectors. The eCommerce Solutions segment provides parcel delivery and cross-border non-time definite international services. The Post & Parcel Germany segment transports and delivers mail communication, parcels, physical and hybrid letters, and special products for the delivery of goods; and offers additional services, such as registered mail, cash on delivery, and insured items. Deutsche Post AG was founded in 1490 and is headquartered in Bonn, Germany.
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