Reviewing Avis Budget Group (NASDAQ:CAR) and U-Haul (NASDAQ:UHALB)

Avis Budget Group (NASDAQ:CAR) and U-Haul (NASDAQ:UHALB) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Avis Budget Group and U-Haul, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avis Budget Group	2	4	1	0	1.86
U-Haul	0	0	0	0	0.00

Avis Budget Group presently has a consensus price target of $143.80, indicating a potential downside of 7.52%. Given Avis Budget Group’s stronger consensus rating and higher probable upside, analysts clearly believe Avis Budget Group is more favorable than U-Haul.

Insider & Institutional Ownership

96.4% of Avis Budget Group shares are owned by institutional investors. Comparatively, 35.7% of U-Haul shares are owned by institutional investors. 52.8% of Avis Budget Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Avis Budget Group and U-Haul’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avis Budget Group	-19.06%	-14.74%	-0.88%
U-Haul	5.31%	4.06%	1.52%

Valuation & Earnings

This table compares Avis Budget Group and U-Haul”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avis Budget Group	$11.79 billion	0.46	-$1.82 billion	($63.26)	-2.46
U-Haul	$5.83 billion	N/A	$367.09 million	$1.43	36.22

U-Haul has lower revenue, but higher earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than U-Haul, indicating that it is currently the more affordable of 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 U-Haul

AMERCO operates as a do-it-yourself moving and storage operator for household and commercial goods in the United States and Canada. The company's Moving and Storage segment rents trucks, trailers, portable moving and storage units, specialty rental items, and self-storage spaces primarily to the household movers; and sells moving supplies, towing accessories, and propane. It also provides uhaul.com, an online marketplace that connects consumers to independent Moving Help service providers and independent self-storage affiliates; auto transport and tow dolly options to transport vehicles; and specialty boxes for dishes, computers, flat screen television, and sensitive electronic equipment, as well as tapes, security locks, and packing supplies. This segment rents its products and services through a network of approximately 2,100 company operated retail moving stores and 21,100 independent U-Haul dealers. As of March 31, 2022, it had a rental fleet of approximately 186,000 trucks, 128,000 trailers, and 46,000 towing devices; and 1,844 self-storage locations with approximately 876,000 rentable storage units. The company's Property and Casualty Insurance segment offers loss adjusting and claims handling services. It also provides moving and storage protection packages, such as Safemove and Safetow packages, which offer moving and towing customers with a damage waiver, cargo protection, and medical and life insurance coverage; Safestor that protects storage customers from loss on their goods in storage; Safestor Mobile, which protects customers stored belongings; and Safemove Plus, which provides rental customers with a layer of primary liability protection. The company's Life Insurance segment provides life and health insurance products primarily to the senior market through the direct writing and reinsuring of life insurance, medicare supplement, and annuity policies. AMERCO was founded in 1945 and is based in Reno, Nevada.