eHi Car Services Limited (EHIC) & Avis Budget Group (CAR) Financial Review

eHi Car Services Limited (NYSE: EHIC) and Avis Budget Group (NASDAQ:CAR) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Profitability

This table compares eHi Car Services Limited and Avis Budget Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
eHi Car Services Limited 2.98% 1.68% 0.86%
Avis Budget Group 0.86% 74.80% 0.96%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for eHi Car Services Limited and Avis Budget Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
eHi Car Services Limited 0 0 0 0 N/A
Avis Budget Group 1 3 5 0 2.44

Avis Budget Group has a consensus price target of $35.78, suggesting a potential upside of 10.87%. Given Avis Budget Group’s higher possible upside, analysts plainly believe Avis Budget Group is more favorable than eHi Car Services Limited.

Insider and Institutional Ownership

29.4% of eHi Car Services Limited shares are owned by institutional investors. 12.0% of eHi Car Services Limited shares are owned by company insiders. Comparatively, 2.8% of Avis Budget Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

eHi Car Services Limited has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.49, suggesting that its share price is 149% more volatile than the S&P 500.

Earnings & Valuation

This table compares eHi Car Services Limited and Avis Budget Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
eHi Car Services Limited $337.16 million 1.89 $150.61 million $0.14 66.43
Avis Budget Group $8.61 billion 0.31 $886.00 million $0.72 44.82

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.

Summary

Avis Budget Group beats eHi Car Services Limited on 8 of the 13 factors compared between the two stocks.

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.

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.

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