Avis Budget Group (NASDAQ:CAR – Get Free Report) and TFI International (NYSE:TFII – Get Free Report) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.
Profitability
This table compares Avis Budget Group and TFI International’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% |
| TFI International | 3.79% | 13.43% | 4.88% |
Institutional & Insider Ownership
96.3% of Avis Budget Group shares are held by institutional investors. Comparatively, 73.3% of TFI International shares are held by institutional investors. 50.5% of Avis Budget Group shares are held by insiders. Comparatively, 5.5% of TFI International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avis Budget Group | $11.86 billion | 0.56 | -$889.00 million | ($19.05) | -9.82 |
| TFI International | $7.88 billion | 1.67 | $310.55 million | $3.59 | 44.65 |
TFI International has lower revenue, but higher earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than TFI International, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Avis Budget Group has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, TFI International has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations for Avis Budget Group and TFI International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avis Budget Group | 4 | 6 | 0 | 0 | 1.60 |
| TFI International | 0 | 8 | 9 | 0 | 2.53 |
Avis Budget Group currently has a consensus price target of $129.63, suggesting a potential downside of 30.73%. TFI International has a consensus price target of $150.43, suggesting a potential downside of 6.15%. Given TFI International’s stronger consensus rating and higher probable upside, analysts clearly believe TFI International is more favorable than Avis Budget Group.
Summary
TFI International beats Avis Budget Group on 10 of the 14 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 TFI International
TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.
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