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 $65.2B against $3.9B — 16.8× the size. Avis Budget Group, Inc. has negative trailing earnings, so its P/E is not meaningful; United Rentals, Inc. trades at 24.7×. United Rentals, Inc. grew revenue faster over the last twelve months: 6.88% against 0.45%. United Rentals, Inc. has the higher net margin (15.7% vs −5.43%) and the higher return on invested capital (11.2% vs 0.15%). Across the 20 metrics below, Avis Budget Group, Inc. leads on 11 and United Rentals, Inc. on 9.

Valuation

Metric CAR URI Rental & Leasing Services median
P/E n/m 24.72 18.17
P/S 0.31 3.83 0.92
P/B n/m 6.98 2.15
Price to free cash flow 1.36 30.94 7.80
EV/EBITDA 5.80 10.61 7.72
EV/Sales 2.47 4.67 2.47
Earnings yield (17.54%) 4.05% 1.00%
Free cash flow yield 73.39% 3.23% 1.43%

Profitability

Metric CAR URI Rental & Leasing Services median
Gross margin 49.40% 38.36% 49.40%
Operating margin 8.49% 24.79% 8.49%
Net margin (5.43%) 15.67% 1.01%
Free cash flow margin 22.75% 12.37% 1.87%
Return on equity 20.83% 28.90% 12.13%
Return on assets (1.97%) 8.72% 0.24%
Return on invested capital 0.15% 11.17% 2.80%

Growth

Metric CAR URI Rental & Leasing Services median
Revenue growth (TTM) 0.45% 6.88% 3.21%
EPS growth (last fiscal year) 50.71% (0.21%) (8.44%)
Revenue growth, 5-year CAGR 16.62% 13.55% 12.97%
Net income growth, 5-year CAGR 0.00% 22.89% 0.00%

Health

Metric CAR URI Rental & Leasing Services median
Debt to equity (7.67) 1.54 1.48
Current ratio 0.81 0.76 1.36
Net debt to EBITDA 5.37 1.94 4.32

Dividend

Metric CAR URI Rental & Leasing Services median
Dividend yield — 0.75% 1.56%
Payout ratio — 0.18 0.22

Size

Metric CAR URI Rental & Leasing Services median
Market cap 3.88b 65.20b 2.43b

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