Head-To-Head Analysis: Avis Budget Group (NASDAQ:CAR) & Grab (NASDAQ:GRAB)

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

Analyst Recommendations

This is a summary of recent ratings for Avis Budget Group and Grab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avis Budget Group	3	6	0	0	1.67
Grab	1	1	8	1	2.82

Avis Budget Group presently has a consensus target price of $135.00, suggesting a potential upside of 15.42%. Grab has a consensus target price of $6.11, suggesting a potential upside of 112.72%. Given Grab’s stronger consensus rating and higher possible upside, analysts clearly believe Grab is more favorable than Avis Budget Group.

Insider & Institutional Ownership

96.3% of Avis Budget Group shares are owned by institutional investors. Comparatively, 55.5% of Grab shares are owned by institutional investors. 50.5% of Avis Budget Group shares are owned by insiders. Comparatively, 3.6% of Grab shares are owned by 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 & Volatility

Avis Budget Group has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Grab has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500.

Earnings and Valuation

This table compares Avis Budget Group and Grab”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avis Budget Group	$11.65 billion	0.35	-$889.00 million	($18.17)	-6.44
Grab	$3.37 billion	3.49	$268.00 million	$0.06	47.83

Grab has lower revenue, but higher earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avis Budget Group	-5.43%	N/A	-0.37%
Grab	15.97%	8.83%	4.92%

Summary

Grab beats Avis Budget Group on 11 of the 15 factors compared between the two stocks.

About Avis Budget Group

Avis Budget Group, Inc. engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean. The International segment is involved in the vehicle rental and car sharing operations in Europe, the Middle East, Africa, Asia, and Australasia. The company was founded in 1946 and is headquartered in Parsippany, NJ.

About Grab

Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.