Avis Budget Group (NASDAQ:CAR – Get Free Report) and Grupo Aeroportuario Del Pacifico (NYSE:PAC – Get Free Report) are both transportation companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.
Profitability
This table compares Avis Budget Group and Grupo Aeroportuario Del Pacifico’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% |
| Grupo Aeroportuario Del Pacifico | 25.04% | 43.12% | 12.01% |
Valuation and Earnings
This table compares Avis Budget Group and Grupo Aeroportuario Del Pacifico”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 | $11.86 billion | 0.55 | -$889.00 million | ($19.05) | -9.74 |
| Grupo Aeroportuario Del Pacifico | $41.72 billion | 0.30 | $499.30 million | $11.16 | 22.45 |
Grupo Aeroportuario Del Pacifico has higher revenue and earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than Grupo Aeroportuario Del Pacifico, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Avis Budget Group has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500. Comparatively, Grupo Aeroportuario Del Pacifico has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Institutional & Insider Ownership
96.3% of Avis Budget Group shares are owned by institutional investors. Comparatively, 11.7% of Grupo Aeroportuario Del Pacifico shares are owned by institutional investors. 50.5% of Avis Budget Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Avis Budget Group and Grupo Aeroportuario Del Pacifico, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avis Budget Group | 6 | 4 | 0 | 0 | 1.40 |
| Grupo Aeroportuario Del Pacifico | 0 | 4 | 2 | 0 | 2.33 |
Avis Budget Group presently has a consensus price target of $125.00, suggesting a potential downside of 32.63%. Given Avis Budget Group’s higher possible upside, equities research analysts plainly believe Avis Budget Group is more favorable than Grupo Aeroportuario Del Pacifico.
Summary
Grupo Aeroportuario Del Pacifico beats Avis Budget Group on 9 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 Grupo Aeroportuario Del Pacifico
Grupo Aeroportuario del Pacífico, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and manage airports in Mexico and Jamaica. The company operates twelve international airports in Guadalajara and Tijuana areas, Mexico; and two international airports in Montego Bay, Jamaica. It also offers aeronautical services, such as passenger, aircraft landing, parking, airport security, and passenger walkway and airport bus, as well as car packing charges; complementary services, including baggage handling, catering, aircraft maintenance and repair, and fuel; cargo handling; and ground transportation services. In addition, the company provides non-aeronautical services, such as redesigning and modernizing terminal spaces and developing new projects; telephone and internet services; and ground handling services under the brand Primesky, as well as advertising services. Further, it engages in commercial activities comprising leasing space in terminals to airlines and other service providers; to retail stores, such as souvenir and gift shops, fashion and footwear stores, pharmacies, jewelry, electronics, cosmetics, and others; to various food and beverage services; car rental service companies, including parking spots, lots, and car rental reservation booths; to timeshare developers; to financial service providers; and to operators of duty-free stores. Additionally, the company operates parking facilities; VIP lounges; convenience stores; and vending machines. The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.
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