Critical Survey: Localiza Rent a Car (OTCMKTS:LZRFY) & SiteOne Landscape Supply (NYSE:SITE)

SiteOne Landscape Supply (NYSE:SITE) and Localiza Rent a Car (OTCMKTS:LZRFY) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares SiteOne Landscape Supply and Localiza Rent a Car’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SiteOne Landscape Supply	3.41%	9.76%	4.83%
Localiza Rent a Car	N/A	N/A	N/A

Valuation & Earnings

This table compares SiteOne Landscape Supply and Localiza Rent a Car”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SiteOne Landscape Supply	$4.70 billion	0.90	$155.40 million	$3.65	26.67
Localiza Rent a Car	N/A	N/A	N/A	$0.39	19.22

SiteOne Landscape Supply has higher revenue and earnings than Localiza Rent a Car. Localiza Rent a Car is trading at a lower price-to-earnings ratio than SiteOne Landscape Supply, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

0.1% of Localiza Rent a Car shares are owned by institutional investors. 2.1% of SiteOne Landscape Supply shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for SiteOne Landscape Supply and Localiza Rent a Car, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SiteOne Landscape Supply	2	5	7	0	2.36
Localiza Rent a Car	1	0	0	0	1.00

SiteOne Landscape Supply currently has a consensus price target of $135.27, suggesting a potential upside of 38.98%. Given SiteOne Landscape Supply’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SiteOne Landscape Supply is more favorable than Localiza Rent a Car.

Summary

SiteOne Landscape Supply beats Localiza Rent a Car on 10 of the 11 factors compared between the two stocks.

About SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.

About Localiza Rent a Car

Localiza Rent a Car S.A. engages in car and fleet rental business. The company is also involved in granting franchises; sale of decommissioned and used cars; provision of sundry automotive, and travel and tourism services; and managing claims for insurance companies, as well as provision of tracking and telemetry services. It operates car rental agencies in Brazil, Argentina, Colombia, Ecuador, and Paraguay. The company serves individuals and legal entities. Localiza Rent a Car S.A. was founded in 1973 and is headquartered in Belo Horizonte, Brazil.