Head to Head Contrast: Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB) vs. Avis Budget Group (NASDAQ:CAR)

Grupo Aeroportuario del Centro Norte (NASDAQ:OMAB) and Avis Budget Group (NASDAQ:CAR) are both mid-cap transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Valuation and Earnings

This table compares Grupo Aeroportuario del Centro Norte and Avis Budget Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroportuario del Centro Norte	$826.93 million	5.33	$237.12 million	$5.40	19.20
Avis Budget Group	$11.79 billion	0.47	-$1.82 billion	($63.26)	-2.51

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

Profitability

This table compares Grupo Aeroportuario del Centro Norte and Avis Budget Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroportuario del Centro Norte	33.00%	52.90%	19.28%
Avis Budget Group	-19.06%	-14.74%	-0.88%

Institutional & Insider Ownership

9.5% of Grupo Aeroportuario del Centro Norte shares are owned by institutional investors. Comparatively, 96.4% of Avis Budget Group shares are owned by institutional investors. 52.8% of Avis Budget Group shares are owned by company 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Grupo Aeroportuario del Centro Norte and Avis Budget Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroportuario del Centro Norte	1	3	3	0	2.29
Avis Budget Group	2	4	1	0	1.86

Grupo Aeroportuario del Centro Norte presently has a consensus target price of $88.38, suggesting a potential downside of 14.76%. Avis Budget Group has a consensus target price of $143.80, suggesting a potential downside of 9.30%. Given Avis Budget Group’s higher probable upside, analysts clearly believe Avis Budget Group is more favorable than Grupo Aeroportuario del Centro Norte.

Risk & Volatility

Grupo Aeroportuario del Centro Norte has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.19, indicating that its share price is 119% more volatile than the S&P 500.

Summary

Grupo Aeroportuario del Centro Norte beats Avis Budget Group on 9 of the 14 factors compared between the two stocks.

About Grupo Aeroportuario del Centro Norte

Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and maintain airports in Mexico. The company operates 13 international airports in Monterrey, Acapulco, Mazatlán, Zihuatanejo, Ciudad Juárez, Reynosa, Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón, and Zacatecas cities. It also operates the NH Collection Hotel in Terminal 2 of the Mexico City International Airport, and a hotel under the Hilton Garden Inn name at the Monterrey International Airport. In addition, the company provides aeronautical services, which include passenger, aircraft landing and parking, boarding and unloading, passenger walkway, and airport security services. Further, it offers complementary services that comprise leasing of space to airlines, cargo handling, baggage-screening, permanent and non-permanent ground transportation, and access rights services; non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, and other commercial tenants, as well as maintaining of parking facilities and advertising; and diversification services, which consists of operation and lease of the industrial park and real estate services, as well as hotel and air cargo logistics services. Additionally, the company provides construction services. It has a strategic alliance with VYNMSA Desarrollo Inmobiliario, S.A. de C.V. to build and operate an industrial park at the Monterrey airport. The company was founded in 1998 and is headquartered in Mexico City, Mexico.

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.