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

Avis Budget Group, Inc. and EquipmentShare.com Inc. are both Rental & Leasing Services companies. EquipmentShare.com Inc. is the larger, with a market value of $4.1B against $3.7B — 1.1× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; EquipmentShare.com Inc. trades at 19.3×. EquipmentShare.com Inc. has the higher net margin (1.03% vs −5.43%) and the higher return on invested capital (23.5% vs 0.15%). Across the 16 metrics below, EquipmentShare.com Inc. leads on 10 and Avis Budget Group, Inc. on 6.

Valuation

Metric CAR EQPT Rental & Leasing Services median
P/E n/m 19.32 19.17
P/S 0.33 0.85 0.99
P/B n/m 3.62 2.23
Price to free cash flow 1.43 n/m 8.31
EV/EBITDA 5.84 3.80 7.84
EV/Sales 2.49 1.51 2.53
Earnings yield (16.66%) 5.18% 0.95%
Free cash flow yield 69.69% (38.71%) 1.43%

Profitability

Metric CAR EQPT Rental & Leasing Services median
Gross margin 49.40% 49.70% 49.40%
Operating margin 8.49% 33.57% 8.49%
Net margin (5.43%) 1.03% 1.01%
Free cash flow margin 22.75% (32.95%) 1.87%
Return on equity 20.83% 0.00% 12.13%
Return on assets (1.97%) 1.49% 0.24%
Return on invested capital 0.15% 23.50% 2.80%

Growth

Metric CAR EQPT Rental & Leasing Services median
Revenue growth (TTM) 0.45% — 3.21%
EPS growth (last fiscal year) 50.71% (74.36%) —
Revenue growth, 5-year CAGR 16.62% — 12.97%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CAR EQPT Rental & Leasing Services median
Debt to equity (7.67) 3.16 1.48
Current ratio 0.81 2.42 1.36
Net debt to EBITDA 5.37 4.59 4.32

Dividend

Metric CAR EQPT Rental & Leasing Services median
Dividend yield 1.59% — 1.59%
Payout ratio 0.00 — 0.00

Size

Metric CAR EQPT Rental & Leasing Services median
Market cap 3.66b 4.14b 2.42b

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