Avis Budget Group, Inc. (CAR) vs Vestis Corporation (VSTS)

Avis Budget Group, Inc. and Vestis Corporation are both Rental & Leasing Services companies. Avis Budget Group, Inc. is the larger, with a market value of $3.9B against $1.9B — 2.0× the size. Avis Budget Group, Inc. grew revenue faster over the last twelve months: 0.45% against −0.39%. Vestis Corporation has the higher net margin (−0.20% vs −5.43%) and the higher return on invested capital (2.97% vs 0.15%). Across the 19 metrics below, Avis Budget Group, Inc. leads on 13 and Vestis Corporation on 6.

Valuation

Metric CAR VSTS Rental & Leasing Services median
P/E n/m n/m 18.17
P/S 0.31 0.68 0.92
P/B n/m 2.10 2.15
Price to free cash flow 1.36 12.81 7.80
EV/EBITDA 5.80 12.64 7.72
EV/Sales 2.47 1.12 2.47
Earnings yield (17.54%) (0.36%) 1.00%
Free cash flow yield 73.39% 7.81% 1.43%

Profitability

Metric CAR VSTS Rental & Leasing Services median
Gross margin 49.40% 26.30% 49.40%
Operating margin 8.49% 3.64% 8.49%
Net margin (5.43%) (0.20%) 1.01%
Free cash flow margin 22.75% 5.33% 1.87%
Return on equity 20.83% (0.60%) 12.13%
Return on assets (1.97%) (0.18%) 0.24%
Return on invested capital 0.15% 2.97% 2.80%

Growth

Metric CAR VSTS Rental & Leasing Services median
Revenue growth (TTM) 0.45% (0.39%) 3.21%
EPS growth (last fiscal year) 50.71% (293.75%) (8.44%)
Revenue growth, 5-year CAGR 16.62% 1.31% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CAR VSTS Rental & Leasing Services median
Debt to equity (7.67) 1.42 1.48
Current ratio 0.81 2.17 1.36
Net debt to EBITDA 5.37 6.12 4.32

Dividend

Metric CAR VSTS Rental & Leasing Services median
Dividend yield — 0.00% 1.56%
Payout ratio — — 0.22

Size

Metric CAR VSTS Rental & Leasing Services median
Market cap 3.88b 1.90b 2.43b

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