Avis Budget Group, Inc. (CAR) vs Aaron's Holdings Company, Inc. (PRG)

Avis Budget Group, Inc. and Aaron's Holdings Company, Inc. are both Rental & Leasing Services companies. Avis Budget Group, Inc. is the larger, with a market value of $3.9B against $1.2B — 3.1× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Aaron's Holdings Company, Inc. trades at 8.4×. Aaron's Holdings Company, Inc. grew revenue faster over the last twelve months: 7.96% against 0.45%. Aaron's Holdings Company, Inc. has the higher net margin (5.61% vs −5.43%) and the higher return on invested capital (8.67% vs 0.15%). Across the 18 metrics below, Aaron's Holdings Company, Inc. leads on 10 and Avis Budget Group, Inc. on 8.

Valuation

Metric CAR PRG Rental & Leasing Services median
P/E n/m 8.42 18.17
P/S 0.31 0.48 0.92
P/B n/m 1.55 2.15
Price to free cash flow 1.36 3.90 7.80
EV/EBITDA 5.80 1.15 7.72
EV/Sales 2.47 0.78 2.47
Earnings yield (17.54%) 11.87% 1.00%
Free cash flow yield 73.39% 25.62% 1.43%

Profitability

Metric CAR PRG Rental & Leasing Services median
Gross margin 49.40% 94.71% 49.40%
Operating margin 8.49% 8.49% 8.49%
Net margin (5.43%) 5.61% 1.01%
Free cash flow margin 22.75% 12.20% 1.87%
Return on equity 20.83% 19.90% 12.13%
Return on assets (1.97%) 8.37% 0.24%
Return on invested capital 0.15% 8.67% 2.80%

Growth

Metric CAR PRG Rental & Leasing Services median
Revenue growth (TTM) 0.45% 7.96% 3.21%
EPS growth (last fiscal year) 50.71% (20.75%) (8.44%)
Revenue growth, 5-year CAGR 16.62% (0.61%) 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAR PRG Rental & Leasing Services median
Debt to equity (7.67) 1.10 1.48
Current ratio 0.81 4.03 1.36
Net debt to EBITDA 5.37 0.16 4.32

Dividend

Metric CAR PRG Rental & Leasing Services median
Dividend yield — 1.77% 1.56%
Payout ratio — 0.15 0.22

Size

Metric CAR PRG Rental & Leasing Services median
Market cap 3.88b 1.24b 2.43b

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