Avis Budget Group, Inc. (CAR) vs Ryder System, Inc. (R)

Avis Budget Group, Inc. and Ryder System, Inc. are both Rental & Leasing Services companies. Ryder System, Inc. is the larger, with a market value of $9.2B against $3.9B — 2.4× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Ryder System, Inc. trades at 19.4×. Ryder System, Inc. grew revenue faster over the last twelve months: 1.12% against 0.45%. Ryder System, Inc. has the higher net margin (3.87% vs −5.43%) and the higher return on invested capital (6.20% vs 0.15%). Across the 19 metrics below, Avis Budget Group, Inc. leads on 11 and Ryder System, Inc. on 8.

Valuation

Metric CAR R Rental & Leasing Services median
P/E n/m 19.40 18.17
P/S 0.31 0.72 0.92
P/B n/m 3.18 2.15
Price to free cash flow 1.36 7.85 7.80
EV/EBITDA 5.80 5.73 7.72
EV/Sales 2.47 1.28 2.47
Earnings yield (17.54%) 5.16% 1.00%
Free cash flow yield 73.39% 12.74% 1.43%

Profitability

Metric CAR R Rental & Leasing Services median
Gross margin 49.40% 19.82% 49.40%
Operating margin 8.49% 7.82% 8.49%
Net margin (5.43%) 3.87% 1.01%
Free cash flow margin 22.75% 9.11% 1.87%
Return on equity 20.83% 16.66% 12.13%
Return on assets (1.97%) 3.05% 0.24%
Return on invested capital 0.15% 6.20% 2.80%

Growth

Metric CAR R Rental & Leasing Services median
Revenue growth (TTM) 0.45% 1.12% 3.21%
EPS growth (last fiscal year) 50.71% 7.96% (8.44%)
Revenue growth, 5-year CAGR 16.62% 8.51% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAR R Rental & Leasing Services median
Debt to equity (7.67) 2.59 1.48
Current ratio 0.81 0.65 1.36
Net debt to EBITDA 5.37 2.56 4.32

Dividend

Metric CAR R Rental & Leasing Services median
Dividend yield — 1.57% 1.56%
Payout ratio — 0.30 0.22

Size

Metric CAR R Rental & Leasing Services median
Market cap 3.88b 9.21b 2.43b

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