Avis Budget Group, Inc. (CAR) vs GATX Corporation (GATX)

Avis Budget Group, Inc. and GATX Corporation are both Rental & Leasing Services companies. GATX Corporation is the larger, with a market value of $6.5B against $4.3B — 1.5× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; GATX Corporation trades at 17.4×. GATX Corporation grew revenue faster over the last twelve months: 29.7% against −0.60%. GATX Corporation has the higher net margin (17.4% vs −6.98%) and the higher return on invested capital (2.74% vs 0.00%). Across the 19 metrics below, Avis Budget Group, Inc. leads on 10 and GATX Corporation on 9.

Valuation

Metric CAR GATX Rental & Leasing Services median
P/E n/m 17.35 20.11
P/S 0.36 2.99 1.11
P/B n/m 1.87 2.44
Price to free cash flow 1.73 n/m 11.04
EV/EBITDA 5.92 14.08 8.70
EV/Sales 2.54 8.26 2.87
Earnings yield (18.84%) 5.76% 3.40%
Free cash flow yield 57.77% (67.15%) 0.63%

Profitability

Metric CAR GATX Rental & Leasing Services median
Gross margin 48.11% 74.16% 48.46%
Operating margin 7.10% 29.92% 8.37%
Net margin (6.98%) 17.41% 1.97%
Free cash flow margin 21.06% (200.95%) 2.91%
Return on equity 29.16% 12.31% 12.31%
Return on assets (2.54%) 2.52% 0.88%
Return on invested capital 0.00% 2.74% 2.86%

Growth

Metric CAR GATX Rental & Leasing Services median
Revenue growth (TTM) (0.60%) 29.67% 4.47%
EPS growth (last fiscal year) 50.71% 17.22% 1.04%
Revenue growth, 5-year CAGR 16.62% 7.55% 11.45%
Net income growth, 5-year CAGR 0.00% 16.72% 0.00%

Health

Metric CAR GATX Rental & Leasing Services median
Debt to equity (0.12) 3.37 1.28
Current ratio 0.70 2.38 1.01
Net debt to EBITDA 5.37 7.65 4.19

Dividend

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

Size

Metric CAR GATX Rental & Leasing Services median
Market cap 4.25b 6.51b 3.37b

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