SP Plus (SP) & Avis Budget Group (CAR) Financial Comparison

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

Analyst Recommendations

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This is a summary of current ratings and price targets for SP Plus and Avis Budget Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SP Plus 0 0 1 0 3.00
Avis Budget Group 2 4 5 0 2.27



SP Plus currently has a consensus price target of $42.00, indicating a potential upside of 14.91%. Avis Budget Group has a consensus price target of $37.90, indicating a potential downside of 21.98%. Given SP Plus’ stronger consensus rating and higher possible upside, analysts clearly believe SP Plus is more favorable than Avis Budget Group.

Volatility & Risk

SP Plus has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.2, meaning that its stock price is 120% more volatile than the S&P 500.

Earnings & Valuation

This table compares SP Plus and Avis Budget Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SP Plus $1.59 billion 0.52 $41.20 million $1.70 21.50
Avis Budget Group $8.85 billion 0.45 $361.00 million $2.85 17.05

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

Profitability

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

Net Margins Return on Equity Return on Assets
SP Plus 2.55% 12.87% 4.97%
Avis Budget Group 4.08% 76.64% 1.25%

Insider & Institutional Ownership

96.0% of SP Plus shares are held by institutional investors. 1.0% of SP Plus shares are held by company insiders. Comparatively, 2.8% of Avis Budget Group shares are held 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.

Summary

Avis Budget Group beats SP Plus on 8 of the 14 factors compared between the two stocks.

About SP Plus

SP Plus Corporation (SP Plus) is a provider of parking management, ground transportation and other ancillary services to commercial, institutional and municipal clients in the United States, Puerto Rico and Canada. The Company’s segments include Region One (Urban), Region Two (Airport transportation), Region Three and Other. Region One (Urban) encompasses its services in healthcare facilities, municipalities, including government facilities, hotels, commercial real estate, residential communities, retail, colleges and universities, as well as ancillary services such as shuttle and transportation services, valet services, taxi and livery dispatch services. Region Two (Airport transportation) encompasses its services at all major airports, as well as ancillary services, which includes shuttle and transportation services and valet services. Region Three encompasses other operating segments, including USA Parking and event planning, including shuttle and transportation services.

About Avis Budget Group

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. It operates the Avis brand, a vehicle rental system with approximately 5,450 locations that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget brand, a vehicle rental and other mobility solutions primarily focuses on the value-conscious segments of the industry; the Zipcar brand, a membership-based car sharing network; and the Budget Truck brand, a local and one-way truck rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of approximately 925 dealer-operated and 450 company-operated locations that serve the consumer and light commercial sectors in the continental United States. The company also operates the Payless brand, which comprises approximately 280 vehicle rental locations; the Apex brand that primarily in the deep-value segment of the car rental industry with approximately 25 rental locations in New Zealand and Australia; and the Maggiore brand that provides vehicle rental services in approximately 140 locations, as well as the France Cars brand, which offers light commercial vehicle fleets with approximately 70 rental locations in France. In addition, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.

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