Localiza Rent a Car (OTCMKTS:LZRFY) versus Boise Cascade (NYSE:BCC) Head-To-Head Review

Localiza Rent a Car (OTCMKTS:LZRFY) and Boise Cascade (NYSE:BCC) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Localiza Rent a Car and Boise Cascade, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Localiza Rent a Car	1	0	0	0	1.00
Boise Cascade	1	3	3	0	2.29

Boise Cascade has a consensus target price of $93.60, indicating a potential upside of 26.50%. Given Boise Cascade’s stronger consensus rating and higher possible upside, analysts clearly believe Boise Cascade is more favorable than Localiza Rent a Car.

Insider & Institutional Ownership

96.2% of Boise Cascade shares are owned by institutional investors. 1.4% of Boise Cascade shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Localiza Rent a Car and Boise Cascade’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Localiza Rent a Car	7.43%	13.79%	4.18%
Boise Cascade	1.64%	5.41%	3.34%

Dividends

Localiza Rent a Car pays an annual dividend of $0.35 per share and has a dividend yield of 3.1%. Boise Cascade pays an annual dividend of $0.92 per share and has a dividend yield of 1.2%. Localiza Rent a Car pays out 58.3% of its earnings in the form of a dividend. Boise Cascade pays out 31.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Boise Cascade has increased its dividend for 6 consecutive years.

Valuation and Earnings

This table compares Localiza Rent a Car and Boise Cascade”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Localiza Rent a Car	$7.48 billion	N/A	$335.90 million	$0.60	18.96
Boise Cascade	$6.40 billion	0.40	$132.84 million	$2.95	25.08

Localiza Rent a Car has higher revenue and earnings than Boise Cascade. Localiza Rent a Car is trading at a lower price-to-earnings ratio than Boise Cascade, indicating that it is currently the more affordable of the two stocks.

Summary

Boise Cascade beats Localiza Rent a Car on 9 of the 15 factors compared between the two stocks.

About Localiza Rent a Car

Localiza Rent a Car S.A. engages in car and fleet rental business. The company is also involved in granting franchises; sale of decommissioned and used cars; provision of sundry automotive, and travel and tourism services; and managing claims for insurance companies, as well as provision of tracking and telemetry services. It operates car rental agencies in Brazil, Argentina, Colombia, Ecuador, and Paraguay. The company serves individuals and legal entities. Localiza Rent a Car S.A. was founded in 1973 and is headquartered in Belo Horizonte, Brazil.

About Boise Cascade

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.