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 $3.7B — 1.8× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; GATX Corporation trades at 18.2×. 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%). Both pay a dividend; GATX Corporation yields more (1.85% vs 1.59%). Across the 20 metrics below, Avis Budget Group, Inc. leads on 10 and GATX Corporation on 10.

Valuation

Metric CAR GATX Rental & Leasing Services median
P/E n/m 18.16 19.17
P/S 0.33 3.20 0.99
P/B n/m 1.83 2.23
Price to free cash flow 1.43 n/m 8.31
EV/EBITDA 5.84 15.53 7.84
EV/Sales 2.49 8.89 2.53
Earnings yield (16.66%) 5.51% 0.95%
Free cash flow yield 69.69% (70.91%) 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% —
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 1.59% 1.85% 1.59%
Payout ratio 0.00 0.35 0.00

Size

Metric CAR GATX Rental & Leasing Services median
Market cap 3.66b 6.47b 2.42b

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