Analyzing Zoomcar (NASDAQ:ZCAR) and Avis Budget Group (NASDAQ:CAR)

Avis Budget Group (NASDAQ:CAR) and Zoomcar (NASDAQ:ZCAR) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Avis Budget Group and Zoomcar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avis Budget Group	0	2	5	0	2.71
Zoomcar	0	0	0	0	N/A

Avis Budget Group currently has a consensus price target of $164.57, indicating a potential upside of 42.36%. Given Avis Budget Group’s higher probable upside, research analysts clearly believe Avis Budget Group is more favorable than Zoomcar.

Profitability

This table compares Avis Budget Group and Zoomcar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avis Budget Group	10.05%	-480.48%	3.72%
Zoomcar	N/A	-13.53%	48.39%

Earnings & Valuation

This table compares Avis Budget Group and Zoomcar’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avis Budget Group	$12.01 billion	0.34	$1.63 billion	$31.68	3.65
Zoomcar	$9.87 million	2.10	-$4.63 million	N/A	N/A

Avis Budget Group has higher revenue and earnings than Zoomcar.

Insider and Institutional Ownership

96.4% of Avis Budget Group shares are owned by institutional investors. Comparatively, 3.7% of Zoomcar shares are owned by institutional investors. 52.0% of Avis Budget Group shares are owned by company insiders. Comparatively, 2.2% of Zoomcar shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Avis Budget Group has a beta of 2.28, suggesting that its share price is 128% more volatile than the S&P 500. Comparatively, Zoomcar has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500.

Summary

Avis Budget Group beats Zoomcar on 8 of the 11 factors compared between the two stocks.

About Avis Budget Group

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers in the Americas, Europe, the Middle East and Africa, Asia, and Australasia. It operates the Avis brand, that offers vehicle rental and other mobility solutions to the premium commercial and leisure segments of the travel industry; and the Zipcar brand, a car sharing network, as well as the Budget brand, a supplier of vehicle rental and other mobility solutions focused primarily on more value-conscious customers comprising Budget car rental, and Budget Truck, a local, and one-way truck and cargo van rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of dealer-operated and company-operated locations that serve the light commercial and consumer sectors in the continental United States. The company also operates various other car rental brands, such as Payless, Apex, Maggiore, Morini Rent, FranceCars, AmicoBlu, Turiscar, and ACL Hire and McNicoll Hire, as well as TurisPrime and RubyCa. 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; fuel service options, roadside assistance services, electronic toll collection services; and access to satellite radio, mobile WiFi devices, GPS navigation, and child safety seat rentals; automobile towing equipment and other moving accessories, such as hand trucks, furniture pads, and moving supplies; and Avis Budget Group Business Intelligence, an online portal complete with rental summary dashboards, visualizations, and detailed reports. 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 based in Parsippany, New Jersey.

About Zoomcar

Zoomcar Holdings, Inc. operates a marketplace for car sharing in India, Indonesia, and Egypt. It connects hosts with guests, who choose from a selection of cars for use at affordable prices, promoting smart transportation solutions. The company was founded in 2013 and is based in Bronxville, New York.