Financial Contrast: Avis Budget Group (CAR) vs. eHi Car Services Limited (EHIC)
Avis Budget Group (NASDAQ: CAR) and eHi Car Services Limited (NYSE:EHIC) are both business services companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, risk, valuation and profitabiliy.
Insider & Institutional Ownership
29.3% of eHi Car Services Limited shares are held by institutional investors. 2.8% of Avis Budget Group shares are held by insiders. Comparatively, 12.0% of eHi Car Services Limited shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Avis Budget Group has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500. Comparatively, eHi Car Services Limited has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.
This is a breakdown of current recommendations for Avis Budget Group and eHi Car Services Limited, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Avis Budget Group||1||3||4||0||2.38|
|eHi Car Services Limited||0||0||0||0||N/A|
Avis Budget Group presently has a consensus target price of $35.38, indicating a potential upside of 10.93%. Given Avis Budget Group’s higher probable upside, equities research analysts plainly believe Avis Budget Group is more favorable than eHi Car Services Limited.
This table compares Avis Budget Group and eHi Car Services Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Avis Budget Group||1.24%||74.55%||1.14%|
|eHi Car Services Limited||2.98%||1.68%||0.86%|
Earnings and Valuation
This table compares Avis Budget Group and eHi Car Services Limited’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Avis Budget Group||$8.62 billion||0.31||$950.00 million||$1.06||30.09|
|eHi Car Services Limited||$333.58 million||2.01||$149.01 million||$0.14||70.00|
Avis Budget Group has higher revenue and earnings than eHi Car Services Limited. Avis Budget Group is trading at a lower price-to-earnings ratio than eHi Car Services Limited, indicating that it is currently the more affordable of the two stocks.
Avis Budget Group beats eHi Car Services Limited on 8 of the 13 factors compared between the two stocks.
About Avis Budget Group
Avis Budget Group Inc. is a provider of vehicle rental and car sharing services. The Company operates three brands, which include Avis, Budget and Zipcar. Avis and Budget are a rental car supplier. It also owns Payless, which a car rental brand; Apex, which is a car rental brand in New Zealand and Australia; Maggiore, a vehicle rental brand in Italy, and France Cars, which operates light commercial vehicle fleets in France. The Company operates in two segments: Americas and International. The Americas segment provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary products and services in North America, South America, Central America and the Caribbean, and operates its car sharing business in certain of these markets. The International segment provides and licenses the Company’s brands to third parties for vehicle rentals and ancillary products and services in Europe, the Middle East, Africa, Asia, Australia and New Zealand.
About eHi Car Services Limited
eHi Car Services Limited, formerly Prudent Choice International Limited, is a holding company. The Company is engaged in car rentals and car services. The Company provides self-drive car rental services to both individual customers, as well as corporate and institutional clients to meet travel, leisure, business and ground transportation needs. The Company operates its car rentals business primarily through its subsidiaries, including Shanghai eHi Car Rental Co., Ltd. (eHi Rental), eHi Auto Services (Jiangsu) Co., Ltd. (eHi Jiangsu), and their subsidiaries and branches. For its car services business, the Company provides vehicles and chauffeur services through different subsidiaries. The Company provides chauffeur services through its subsidiary, Shanghai Smart Brand Auto Driving Services Co., Ltd. (Shanghai Smart Brand), and its subsidiaries and branches. The Company has a limited operating history.
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