Avis Budget Group, Inc. (CAR) vs Hertz Global Holdings, Inc. (HTZ)

Avis Budget Group, Inc. and Hertz Global Holdings, Inc. are both Rental & Leasing Services companies. Avis Budget Group, Inc. is the larger, with a market value of $3.7B against $630.9M — 5.8× the size. Hertz Global Holdings, Inc. grew revenue faster over the last twelve months: 3.39% against 0.45%. Hertz Global Holdings, Inc. has the higher net margin (−3.13% vs −5.43%) and the higher return on invested capital (0.43% vs 0.15%). Across the 18 metrics below, Avis Budget Group, Inc. leads on 9 and Hertz Global Holdings, Inc. on 9.

Valuation

Metric CAR HTZ Rental & Leasing Services median
P/E n/m n/m 19.17
P/S 0.33 0.06 0.99
P/B n/m n/m 2.23
Price to free cash flow 1.43 n/m 8.31
EV/EBITDA 5.84 14.20 7.84
EV/Sales 2.49 4.13 2.53
Earnings yield (16.66%) (50.57%) 0.95%
Free cash flow yield 69.69% (191.78%) 1.43%

Profitability

Metric CAR HTZ Rental & Leasing Services median
Gross margin 49.40% 36.91% 49.40%
Operating margin 8.49% 2.76% 8.49%
Net margin (5.43%) (3.13%) 1.01%
Free cash flow margin 22.75% (12.01%) 1.87%
Return on equity 20.83% 49.29% 12.13%
Return on assets (1.97%) (1.19%) 0.24%
Return on invested capital 0.15% 0.43% 2.80%

Growth

Metric CAR HTZ Rental & Leasing Services median
Revenue growth (TTM) 0.45% 3.39% 3.21%
EPS growth (last fiscal year) 50.71% 73.98% —
Revenue growth, 5-year CAGR 16.62% 10.09% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAR HTZ Rental & Leasing Services median
Debt to equity (7.67) (59.70) 1.48
Current ratio 0.81 1.53 1.36
Net debt to EBITDA 5.37 6.72 4.32

Dividend

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

Size

Metric CAR HTZ Rental & Leasing Services median
Market cap 3.66b 630.92m 2.42b

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