Avis Budget Group, Inc. (CAR) vs Sunbelt Rentals Holdings, Inc. (SUNB)

Avis Budget Group, Inc. and Sunbelt Rentals Holdings, Inc. are both Rental & Leasing Services companies. Sunbelt Rentals Holdings, Inc. is the larger, with a market value of $31.2B against $4.3B — 7.3× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Sunbelt Rentals Holdings, Inc. trades at 22.6×. Sunbelt Rentals Holdings, Inc. has the higher net margin (12.8% vs −6.98%) and the higher return on invested capital (9.04% vs 0.00%). Across the 17 metrics below, Avis Budget Group, Inc. leads on 9 and Sunbelt Rentals Holdings, Inc. on 8.

Valuation

Metric CAR SUNB Rental & Leasing Services median
P/E n/m 22.62 20.11
P/S 0.36 2.82 1.11
P/B n/m 4.21 2.44
Price to free cash flow 1.73 11.04 11.04
EV/EBITDA 5.92 11.50 8.70
EV/Sales 2.54 3.59 2.87
Earnings yield (18.84%) 4.42% 3.40%
Free cash flow yield 57.77% 9.06% 0.63%

Profitability

Metric CAR SUNB Rental & Leasing Services median
Gross margin 48.11% 39.08% 48.46%
Operating margin 7.10% 20.78% 8.37%
Net margin (6.98%) 12.82% 1.97%
Free cash flow margin 21.06% 25.55% 2.91%
Return on equity 29.16% 0.00% 12.31%
Return on assets (2.54%) 12.08% 0.88%
Return on invested capital 0.00% 9.04% 2.86%

Growth

Metric CAR SUNB Rental & Leasing Services median
Revenue growth (TTM) (0.60%) — 4.47%
EPS growth (last fiscal year) 50.71% (11.37%) 1.04%
Revenue growth, 5-year CAGR 16.62% — 11.45%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric CAR SUNB Rental & Leasing Services median
Debt to equity (0.12) 1.15 1.28
Current ratio 0.70 0.94 1.01
Net debt to EBITDA 5.37 1.68 4.19

Dividend

Metric CAR SUNB Rental & Leasing Services median
Dividend yield — 1.37% 1.38%
Payout ratio — 0.31 0.24

Size

Metric CAR SUNB Rental & Leasing Services median
Market cap 4.25b 31.20b 3.37b

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