Avis Budget Group (NASDAQ:CAR) and Royal Mail (OTCMKTS:ROYMY) Head to Head Analysis

Royal Mail (OTCMKTS:ROYMY) and Avis Budget Group (NASDAQ:CAR) are both mid-cap transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Earnings and Valuation

This table compares Royal Mail and Avis Budget Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Royal Mail	$15.94 billion	0.26	$67.88 million	N/A	N/A
Avis Budget Group	$11.40 billion	0.45	-$1.82 billion	($59.80)	-2.42

Royal Mail has higher revenue and earnings than Avis Budget Group.

Volatility and Risk

Royal Mail has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.12, indicating that its share price is 112% more volatile than the S&P 500.

Institutional & Insider Ownership

96.3% of Avis Budget Group 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, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Royal Mail	N/A	N/A	N/A
Avis Budget Group	-17.95%	N/A	-0.48%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Royal Mail	0	0	0	0	0.00
Avis Budget Group	4	4	1	0	1.67

Avis Budget Group has a consensus price target of $136.83, suggesting a potential downside of 5.48%. Given Avis Budget Group’s stronger consensus rating and higher probable upside, analysts clearly believe Avis Budget Group is more favorable than Royal Mail.

Summary

Avis Budget Group beats Royal Mail on 7 of the 11 factors compared between the two stocks.

About Royal Mail

International Distributions Services plc, together with its subsidiaries, operates as a universal postal service provider in the United Kingdom and internationally. The company offers parcels and letter delivery services under the Royal Mail and Parcelforce Worldwide brands. It also provides services for the collection, sorting, and delivery of parcels and letters. In addition, the company operates ground-based parcel delivery networks in Europe that covers 40 countries and nation states. Further, it provides express parcel delivery and logistics services. Additionally, the company engages in property holdings and facilities management activities. It serves consumers, and small and medium-sized enterprises. The company was formerly known as Royal Mail plc and changed its name to International Distributions Services plc in October 2022. International Distributions Services plc was founded in 1516 and is based in London, the United Kingdom.

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.