Avis Budget Group, Inc. (CAR) vs EquipmentShare.com Inc. (EQPT)

Avis Budget Group, Inc. and EquipmentShare.com Inc. are both Rental & Leasing Services companies. Avis Budget Group, Inc. is the larger, with a market value of $4.3B against $3.5B — 1.2× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; EquipmentShare.com Inc. trades at 15.4×. EquipmentShare.com Inc. has the higher net margin (1.03% vs −6.98%) and the higher return on invested capital (23.5% vs 0.00%). Across the 16 metrics below, EquipmentShare.com Inc. leads on 11 and Avis Budget Group, Inc. on 5.

Valuation

Metric CAR EQPT Rental & Leasing Services median
P/E n/m 15.37 20.11
P/S 0.36 0.68 1.11
P/B n/m 2.88 2.44
Price to free cash flow 1.73 n/m 11.04
EV/EBITDA 5.92 3.36 8.70
EV/Sales 2.54 1.33 2.87
Earnings yield (18.84%) 6.51% 3.40%
Free cash flow yield 57.77% (48.66%) 0.63%

Profitability

Metric CAR EQPT Rental & Leasing Services median
Gross margin 48.11% 49.70% 48.46%
Operating margin 7.10% 33.57% 8.37%
Net margin (6.98%) 1.03% 1.97%
Free cash flow margin 21.06% (32.95%) 2.91%
Return on equity 29.16% 0.00% 12.31%
Return on assets (2.54%) 1.49% 0.88%
Return on invested capital 0.00% 23.50% 2.86%

Growth

Metric CAR EQPT Rental & Leasing Services median
Revenue growth (TTM) (0.60%) — 4.47%
EPS growth (last fiscal year) 50.71% 102.08% 1.04%
Revenue growth, 5-year CAGR 16.62% — 11.45%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CAR EQPT Rental & Leasing Services median
Debt to equity (0.12) 3.16 1.28
Current ratio 0.70 2.42 1.01
Net debt to EBITDA 5.37 4.59 4.19

Dividend

Metric CAR EQPT Rental & Leasing Services median
Dividend yield — — 1.38%
Payout ratio — — 0.24

Size

Metric CAR EQPT Rental & Leasing Services median
Market cap 4.25b 3.47b 3.37b

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