Ryder (NYSE: R) and Avis Budget Group (NASDAQ:CAR) are both mid-cap transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
This table compares Ryder and Avis Budget Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avis Budget Group||4.08%||76.64%||1.25%|
This table compares Ryder and Avis Budget Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ryder||$7.33 billion||0.54||$790.55 million||$4.53||16.52|
|Avis Budget Group||$8.85 billion||0.44||$361.00 million||$2.85||16.68|
Ryder has higher earnings, but lower revenue than Avis Budget Group. Ryder is trading at a lower price-to-earnings ratio than Avis Budget Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Ryder and Avis Budget Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avis Budget Group||2||4||5||0||2.27|
Ryder presently has a consensus price target of $84.63, suggesting a potential upside of 13.09%. Avis Budget Group has a consensus price target of $37.90, suggesting a potential downside of 20.29%. Given Ryder’s stronger consensus rating and higher probable upside, equities analysts plainly believe Ryder is more favorable than Avis Budget Group.
Insider and Institutional Ownership
93.4% of Ryder shares are owned by institutional investors. 2.3% of Ryder shares are owned by company insiders. Comparatively, 1.6% of Avis Budget Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Ryder has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.
Ryder pays an annual dividend of $2.08 per share and has a dividend yield of 2.8%. Avis Budget Group does not pay a dividend. Ryder pays out 45.9% of its earnings in the form of a dividend. Ryder has increased its dividend for 9 consecutive years.
Ryder beats Avis Budget Group on 11 of the 17 factors compared between the two stocks.
Ryder Company Profile
Ryder System, Inc. provides transportation and supply chain management solutions worldwide. The company operates through three segments: Fleet Management Solutions (FMS), Dedicated Transportation Solutions (DTS), and Supply Chain Solutions (SCS). The FMS segment offers full service leasing and leasing with flexible maintenance options, as well as maintenance services, supplies, and related equipment for operation of the vehicles; commercial vehicle rental services; and contract or transactional maintenance services of trucks, tractors, and trailers, as well as ancillary maintenance and fleet support services. This segment also provides access to diesel fuel; offers fuel services, such as fuel planning and tax reporting, centralized billing, fuel cards, and fuel monitoring services; and sells used vehicles through its 53 retail sales centers and Usedtrucks.Ryder.com Website. The DTS segment offers equipment, maintenance, drivers, administrative, and additional services, as well as routing and scheduling, fleet sizing, safety, regulatory compliance, risk management, technology and communication systems support, and other technical support services. The SCS segment comprises distribution management services, such as managing the flow of goods from the receiving to the shipping function; coordinating warehousing and transportation for inbound and outbound material flows; handling import and export for international shipments; coordinating just-in-time replenishment of component parts to manufacturing and final assembly; and providing shipments to customer distribution centers or end customer delivery points, as well as other value added services. This segment also offers transportation management services, such as shipment optimization, load scheduling, and delivery confirmation services through technological and Web-based solutions; and knowledge-based professional services. Ryder System, Inc. was founded in 1933 and is headquartered in Miami, Florida.
Avis Budget Group Company Profile
Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. It operates the Avis brand, a vehicle rental system with approximately 5,450 locations that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget brand, a vehicle rental and other mobility solutions primarily focuses on the value-conscious segments of the industry; the Zipcar brand, a membership-based car sharing network; and the Budget Truck brand, a local and one-way truck rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of approximately 925 dealer-operated and 450 company-operated locations that serve the consumer and light commercial sectors in the continental United States. The company also operates the Payless brand, which comprises approximately 280 vehicle rental locations; the Apex brand that primarily in the deep-value segment of the car rental industry with approximately 25 rental locations in New Zealand and Australia; and the Maggiore brand that provides vehicle rental services in approximately 140 locations, as well as the France Cars brand, which offers light commercial vehicle fleets with approximately 70 rental locations in France. In addition, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.
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