Avis Budget Group, Inc. (CAR) vs United Rentals, Inc. (URI)

Avis Budget Group, Inc. and United Rentals, Inc. are both Rental & Leasing Services companies. United Rentals, Inc. is the larger, with a market value of $64.6B against $4.3B — 15.2× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; United Rentals, Inc. trades at 23.1×. United Rentals, Inc. grew revenue faster over the last twelve months: 9.45% against −0.60%. United Rentals, Inc. has the higher net margin (16.3% vs −6.98%) and the higher return on invested capital (11.5% vs 0.00%). Across the 20 metrics below, Avis Budget Group, Inc. leads on 10 and United Rentals, Inc. on 10.

Valuation

Metric CAR URI Rental & Leasing Services median
P/E n/m 23.05 20.11
P/S 0.36 3.73 1.11
P/B n/m 6.73 2.44
Price to free cash flow 1.73 27.61 11.04
EV/EBITDA 5.92 10.28 8.70
EV/Sales 2.54 4.56 2.87
Earnings yield (18.84%) 4.34% 3.40%
Free cash flow yield 57.77% 3.62% 0.63%

Profitability

Metric CAR URI Rental & Leasing Services median
Gross margin 48.11% 39.08% 48.46%
Operating margin 7.10% 25.54% 8.37%
Net margin (6.98%) 16.33% 1.97%
Free cash flow margin 21.06% 13.50% 2.91%
Return on equity 29.16% 30.56% 12.31%
Return on assets (2.54%) 9.09% 0.88%
Return on invested capital 0.00% 11.53% 2.86%

Growth

Metric CAR URI Rental & Leasing Services median
Revenue growth (TTM) (0.60%) 9.45% 4.47%
EPS growth (last fiscal year) 50.71% (0.21%) 1.04%
Revenue growth, 5-year CAGR 16.62% 13.55% 11.45%
Net income growth, 5-year CAGR 0.00% 22.89% 0.00%

Health

Metric CAR URI Rental & Leasing Services median
Debt to equity (0.12) 1.51 1.28
Current ratio 0.70 0.80 1.01
Net debt to EBITDA 5.37 1.94 4.19

Dividend

Metric CAR URI Rental & Leasing Services median
Dividend yield — 0.73% 1.38%
Payout ratio — 0.17 0.24

Size

Metric CAR URI Rental & Leasing Services median
Market cap 4.25b 64.63b 3.37b

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