Avis Budget Group (NASDAQ:CAR – Get Free Report) and Hub Group (NASDAQ:HUBG – Get Free Report) are both mid-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.
Profitability
This table compares Avis Budget Group and Hub Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avis Budget Group | -5.68% | N/A | -0.47% |
| Hub Group | N/A | N/A | N/A |
Valuation and Earnings
This table compares Avis Budget Group and Hub Group”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avis Budget Group | $11.65 billion | 0.50 | -$889.00 million | ($19.05) | -8.58 |
| Hub Group | $3.95 billion | 0.70 | $103.99 million | $1.73 | 25.98 |
Hub Group has lower revenue, but higher earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than Hub Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
96.3% of Avis Budget Group shares are held by institutional investors. Comparatively, 46.8% of Hub Group shares are held by institutional investors. 50.5% of Avis Budget Group shares are held by company insiders. Comparatively, 3.5% of Hub Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent ratings for Avis Budget Group and Hub Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avis Budget Group | 4 | 6 | 0 | 0 | 1.60 |
| Hub Group | 1 | 9 | 7 | 0 | 2.35 |
Avis Budget Group presently has a consensus target price of $131.50, indicating a potential downside of 19.54%. Hub Group has a consensus target price of $43.14, indicating a potential downside of 4.00%. Given Hub Group’s stronger consensus rating and higher possible upside, analysts clearly believe Hub Group is more favorable than Avis Budget Group.
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, Hub Group has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Summary
Hub Group beats Avis Budget Group on 9 of the 13 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 Hub Group
Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. The company's transportation services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking, as well as final mile, railcar, small parcel, and international transportation. Its logistics services comprise full outsource logistics solution, transportation management, freight consolidation, warehousing and fulfillment, final mile delivery, and parcel and international services. The company also provides dry van, expedited, less-than-truckload, refrigerated, and flatbed truck brokerage services. It offers a fleet of approximately 2,300 tractors, 460 independent owner-operators, and 4,300 trailers to its customers, as well as the management and infrastructure. The company serves a range of industries, including retail, consumer products, and durable goods. As of December 31, 2023, it owned approximately 50,000 dry, 53-foot containers, as well as 900 refrigerated and 53-foot containers. The company was founded in 1971 and is headquartered in Oak Brook, Illinois.
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