Avis Budget Group, Inc. (CAR) vs McGrath RentCorp (MGRC)

Avis Budget Group, Inc. and McGrath RentCorp are both Rental & Leasing Services companies. Avis Budget Group, Inc. is the larger, with a market value of $3.7B against $2.7B — 1.3× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; McGrath RentCorp trades at 18.2×. Avis Budget Group, Inc. grew revenue faster over the last twelve months: 0.45% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs −5.43%) and the higher return on invested capital (12.0% vs 0.15%). Both pay a dividend; Avis Budget Group, Inc. yields more (1.59% vs 1.43%). Across the 21 metrics below, Avis Budget Group, Inc. leads on 14 and McGrath RentCorp on 7.

Valuation

Metric CAR MGRC Rental & Leasing Services median
P/E n/m 18.20 19.17
P/S 0.33 2.97 0.99
P/B n/m 2.23 2.23
Price to free cash flow 1.43 35.10 8.31
EV/EBITDA 5.84 7.94 7.84
EV/Sales 2.49 2.97 2.53
Earnings yield (16.66%) 5.49% 0.95%
Free cash flow yield 69.69% 2.85% 1.43%

Profitability

Metric CAR MGRC Rental & Leasing Services median
Gross margin 49.40% 48.52% 49.40%
Operating margin 8.49% 25.47% 8.49%
Net margin (5.43%) 16.38% 1.01%
Free cash flow margin 22.75% 8.46% 1.87%
Return on equity 20.83% 12.69% 12.13%
Return on assets (1.97%) 6.33% 0.24%
Return on invested capital 0.15% 11.96% 2.80%

Growth

Metric CAR MGRC Rental & Leasing Services median
Revenue growth (TTM) 0.45% (0.92%) 3.21%
EPS growth (last fiscal year) 50.71% (32.66%) —
Revenue growth, 5-year CAGR 16.62% 10.52% 12.97%
Net income growth, 5-year CAGR 0.00% 8.92% 0.00%

Health

Metric CAR MGRC Rental & Leasing Services median
Debt to equity (7.67) 0.00 1.48
Current ratio 0.81 0.26 1.36
Net debt to EBITDA 5.37 0.00 4.32

Dividend

Metric CAR MGRC Rental & Leasing Services median
Dividend yield 1.59% 1.43% 1.59%
Payout ratio 0.00 0.40 0.00

Size

Metric CAR MGRC Rental & Leasing Services median
Market cap 3.66b 2.73b 2.42b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack