Element Fleet Management (OTCMKTS:ELEEF) vs. Localiza Rent a Car (OTCMKTS:LZRFY) Financial Analysis

Localiza Rent a Car (OTCMKTS:LZRFY) and Element Fleet Management (OTCMKTS:ELEEF) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Dividends

Localiza Rent a Car pays an annual dividend of $0.24 per share and has a dividend yield of 2.3%. Element Fleet Management pays an annual dividend of $0.43 per share and has a dividend yield of 1.8%. Element Fleet Management pays out 62.3% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Localiza Rent a Car and Element Fleet Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Localiza Rent a Car	0	1	0	0	2.00
Element Fleet Management	0	0	4	1	3.20

Earnings and Valuation

This table compares Localiza Rent a Car and Element Fleet Management”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Localiza Rent a Car	N/A	N/A	N/A	N/A	N/A
Element Fleet Management	$1.19 billion	8.01	$279.13 million	$0.69	34.67

Element Fleet Management has higher revenue and earnings than Localiza Rent a Car.

Profitability

This table compares Localiza Rent a Car and Element Fleet Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Localiza Rent a Car	N/A	N/A	N/A
Element Fleet Management	23.55%	22.68%	3.63%

Insider and Institutional Ownership

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

Summary

Element Fleet Management beats Localiza Rent a Car on 8 of the 11 factors compared between the two stocks.

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.

About Element Fleet Management

Element Fleet Management Corp. operates as a fleet management company primarily in Canada, Mexico, Australia, and New Zealand. The company offers end-to-end fleet cars, trucks, and material handling support equipment acquisition; and end-to-end electric vehicle fleet including fleet planning, charging infrastructure solutions, acquisition, financing, maintenance, and remarketing. It provides commercial fleet financing comprising operating and capital lease, sale and leaseback funding, loans, rental fleet financing, client owned acquisition program, and fair market value lease for fleet cars, trucks, and equipment; and vehicle licensing and registration services, such as renewal, fleet title management, and insurance card management services. In addition, the company provides collision management services, such as 24/7 driver assistance, collision evaluation, repair management, and subrogation; fleet management outsourcing solutions; fuel, maintenance, and safety solutions; telematics and fleet connectivity solutions; and toll and violation management, as well as fleet remarketing, sale leaseback, and strategic fleet management consulting services. It serves construction, energy, oil and gas, food and beverages, healthcare, services, and transport sectors. Element Fleet Management Corp. was incorporated in 2007 and is based in Toronto, Canada.