Aercap Holdings N.V. (AER) vs Avis Budget Group, Inc. (CAR)

Aercap Holdings N.V. and Avis Budget Group, Inc. are both Rental & Leasing Services companies. Aercap Holdings N.V. is the larger, with a market value of $22.5B against $3.7B — 6.1× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Aercap Holdings N.V. trades at 7.2×. Aercap Holdings N.V. grew revenue faster over the last twelve months: 12.2% against 0.45%. Aercap Holdings N.V. has the higher net margin (37.9% vs −5.43%) and the higher return on invested capital (3.84% vs 0.15%). Both pay a dividend; Avis Budget Group, Inc. yields more (1.59% vs 0.01%). Across the 20 metrics below, Aercap Holdings N.V. leads on 10 and Avis Budget Group, Inc. on 10.

Valuation

Metric AER CAR Rental & Leasing Services median
P/E 7.22 n/m 19.17
P/S 2.60 0.33 0.99
P/B 1.26 n/m 2.23
Price to free cash flow 3.59 1.43 8.31
EV/EBITDA 7.73 5.84 7.84
EV/Sales 7.17 2.49 2.53
Earnings yield 13.85% (16.66%) 0.95%
Free cash flow yield 27.82% 69.69% 1.43%

Profitability

Metric AER CAR Rental & Leasing Services median
Gross margin 100.00% 49.40% 49.40%
Operating margin 61.91% 8.49% 8.49%
Net margin 37.85% (5.43%) 1.01%
Free cash flow margin 72.28% 22.75% 1.87%
Return on equity 18.66% 20.83% 12.13%
Return on assets 4.69% (1.97%) 0.24%
Return on invested capital 3.84% 0.15% 2.80%

Growth

Metric AER CAR Rental & Leasing Services median
Revenue growth (TTM) 12.24% 0.45% 3.21%
EPS growth (last fiscal year) 97.41% 50.71% —
Revenue growth, 5-year CAGR 13.64% 16.62% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AER CAR Rental & Leasing Services median
Debt to equity 2.32 (7.67) 1.48
Current ratio 0.28 0.81 1.36
Net debt to EBITDA 4.74 5.37 4.32

Dividend

Metric AER CAR Rental & Leasing Services median
Dividend yield 0.01% 1.59% 1.59%
Payout ratio 0.00 0.00 0.00

Size

Metric AER CAR Rental & Leasing Services median
Market cap 22.46b 3.66b 2.42b

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