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 $10.3B against $4.3B — 2.4× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Ryder System, Inc. trades at 20.6×. Ryder System, Inc. grew revenue faster over the last twelve months: 3.16% against −0.60%. Ryder System, Inc. has the higher net margin (3.98% vs −6.98%) and the higher return on invested capital (6.45% vs 0.00%). 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 20.57 20.11
P/S 0.36 0.79 1.11
P/B n/m 3.47 2.44
Price to free cash flow 1.73 7.16 11.04
EV/EBITDA 5.92 6.00 8.70
EV/Sales 2.54 1.33 2.87
Earnings yield (18.84%) 4.86% 3.40%
Free cash flow yield 57.77% 13.96% 0.63%

Profitability

Metric CAR R Rental & Leasing Services median
Gross margin 48.11% 19.58% 48.46%
Operating margin 7.10% 7.87% 8.37%
Net margin (6.98%) 3.98% 1.97%
Free cash flow margin 21.06% 11.02% 2.91%
Return on equity 29.16% 17.13% 12.31%
Return on assets (2.54%) 3.18% 0.88%
Return on invested capital 0.00% 6.45% 2.86%

Growth

Metric CAR R Rental & Leasing Services median
Revenue growth (TTM) (0.60%) 3.16% 4.47%
EPS growth (last fiscal year) 50.71% 7.96% 1.04%
Revenue growth, 5-year CAGR 16.62% 8.51% 11.45%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAR R Rental & Leasing Services median
Debt to equity (0.12) 2.42 1.28
Current ratio 0.70 0.67 1.01
Net debt to EBITDA 5.37 2.56 4.19

Dividend

Metric CAR R Rental & Leasing Services median
Dividend yield — 1.39% 1.38%
Payout ratio — 0.29 0.24

Size

Metric CAR R Rental & Leasing Services median
Market cap 4.25b 10.33b 3.37b

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