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 $5.8B against $3.9B — 1.5× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; GATX Corporation trades at 16.4×. GATX Corporation grew revenue faster over the last twelve months: 22.8% against 0.45%. GATX Corporation has the higher net margin (17.6% vs −5.43%) and the higher return on invested capital (2.46% vs 0.15%). 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 16.35 18.17
P/S 0.31 2.88 0.92
P/B n/m 1.65 2.15
Price to free cash flow 1.36 n/m 7.80
EV/EBITDA 5.80 14.98 7.72
EV/Sales 2.47 8.58 2.47
Earnings yield (17.54%) 6.11% 1.00%
Free cash flow yield 73.39% (78.71%) 1.43%

Profitability

Metric CAR GATX Rental & Leasing Services median
Gross margin 49.40% 73.63% 49.40%
Operating margin 8.49% 29.05% 8.49%
Net margin (5.43%) 17.64% 1.01%
Free cash flow margin 22.75% (226.65%) 1.87%
Return on equity 20.83% 11.57% 12.13%
Return on assets (1.97%) 2.34% 0.24%
Return on invested capital 0.15% 2.46% 2.80%

Growth

Metric CAR GATX Rental & Leasing Services median
Revenue growth (TTM) 0.45% 22.81% 3.21%
EPS growth (last fiscal year) 50.71% 17.22% (8.44%)
Revenue growth, 5-year CAGR 16.62% 7.55% 12.97%
Net income growth, 5-year CAGR 0.00% 16.72% 0.00%

Health

Metric CAR GATX Rental & Leasing Services median
Debt to equity (7.67) 3.44 1.48
Current ratio 0.81 3.90 1.36
Net debt to EBITDA 5.37 7.65 4.32

Dividend

Metric CAR GATX Rental & Leasing Services median
Dividend yield — 1.56% 1.56%
Payout ratio — 0.26 0.22

Size

Metric CAR GATX Rental & Leasing Services median
Market cap 3.88b 5.83b 2.43b

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