Head-To-Head Review: Avis Budget Group (NASDAQ:CAR) vs. Grupo Aeroportuario Del Pacifico (NYSE:PAC)

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

Institutional and Insider Ownership

96.4% 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 company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

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 & Earnings

This table compares Avis Budget Group and Grupo Aeroportuario Del Pacifico”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avis Budget Group	$11.65 billion	0.46	-$889.00 million	($19.05)	-7.94
Grupo Aeroportuario Del Pacifico	$2.16 billion	5.77	$499.30 million	$11.16	22.10

Grupo Aeroportuario Del Pacifico has lower revenue, but higher 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Avis Budget Group and Grupo Aeroportuario Del Pacifico, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avis Budget Group	5	5	0	0	1.50
Grupo Aeroportuario Del Pacifico	0	4	2	0	2.33

Avis Budget Group currently has a consensus price target of $125.00, indicating a potential downside of 17.32%. Given Avis Budget Group’s higher probable upside, equities research analysts plainly believe Avis Budget Group is more favorable than Grupo Aeroportuario Del Pacifico.

Volatility and Risk

Avis Budget Group has a beta of 1.91, suggesting that its stock price is 91% more volatile than the S&P 500. Comparatively, Grupo Aeroportuario Del Pacifico has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

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.