Reviewing eHi Car Services Limited (EHIC)’s and Avis Budget Group Inc. (NASDAQ:CAR)’s results

We will be contrasting the differences between eHi Car Services Limited (NYSE:EHIC) and Avis Budget Group Inc. (NASDAQ:CAR) as far as institutional ownership, earnings and valuation, profitability, risk, dividends, analyst recommendations are concerned. The two businesses are rivals in the Rental & Leasing Services industry.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
eHi Car Services Limited N/A 0.00 N/A 0.16 78.21
Avis Budget Group Inc. 9.12B 0.29 165.00M 2.09 17.44

Table 1 demonstrates eHi Car Services Limited and Avis Budget Group Inc.’s gross revenue, earnings per share and valuation. The business that is currently more expensive of the two stocks is the one that has a higher P/E ratio. eHi Car Services Limited’s current P/E ratio is higher than that of Avis Budget Group Inc., which means that it is the expensive of the two.

Profitability

Table 2 provides us the return on equity, net margins and return on assets of both companies.

Net Margins Return on Equity Return on Assets
eHi Car Services Limited 0.00% 0% 0%
Avis Budget Group Inc. 1.81% 37.5% 0.8%

Risk & Volatility

eHi Car Services Limited is 83.00% less volatile than Standard & Poor’s 500 because the company has a beta of 0.17. Avis Budget Group Inc. has a 1.97 beta and it is 97.00% more volatile than Standard & Poor’s 500.

Liquidity

eHi Car Services Limited has a Current Ratio of 0.9 and a Quick Ratio of 0.9. Competitively, Avis Budget Group Inc.’s Current Ratio is 1.3 and has 1.3 Quick Ratio. Avis Budget Group Inc.’s better ability to pay short and long-term obligations than eHi Car Services Limited.

Analyst Recommendations

The following table shown below contains the ratings and recommendations for eHi Car Services Limited and Avis Budget Group Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
eHi Car Services Limited 0 0 0 0.00
Avis Budget Group Inc. 1 1 2 2.50

On the other hand, Avis Budget Group Inc.’s potential upside is 11.43% and its average target price is $38.5.

Institutional & Insider Ownership

The shares of both eHi Car Services Limited and Avis Budget Group Inc. are owned by institutional investors at 47.1% and 0% respectively. 25.84% are eHi Car Services Limited’s share held by insiders. Comparatively, Avis Budget Group Inc. has 1.2% of it’s share held by insiders.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
eHi Car Services Limited 2.01% 16.3% 14.99% -2.4% 4.99% 16.19%
Avis Budget Group Inc. 3.37% 36.94% 17.87% 7.17% -17.69% 62.28%

For the past year eHi Car Services Limited has weaker performance than Avis Budget Group Inc.

Summary

Avis Budget Group Inc. beats eHi Car Services Limited on 10 of the 12 factors.

eHi Car Services Limited, through its subsidiaries, provides car rentals and car services to individuals, and corporate and institutional clients in the People's Republic of China. The company offers self-driven car rental services; and chauffeured car services, including airport pickup and drop-off, inter-office transfers, and other business transportation services, as well as services for event-driven activities, such as conventions, promotional tours, and special events. As of December 31, 2016, the company had a car rental fleet of 53,658 vehicles; and car services fleet of 3,258 vehicles. eHi Car Services Limited was founded in 2006 and is headquartered in Shanghai, the People's Republic of China.

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary services to businesses and consumers worldwide. The company operates through two segments, Americas and International. It operates the Avis brand car rental system with approximately 5,550 locations that supply rental cars to the premium commercial and leisure segments of the travel industry; the Budget brand vehicle rental system with approximately 4,050 car rental locations, which serve the value-conscious segments of the industry; and the Zipcar brand, a membership-based car sharing network that provides vehicles to approximately 1 million members. The company also operates the Payless brand, which comprises approximately 240 vehicle rental locations; the Apex brand primarily in the deep-value segment of the car rental industry with approximately 25 rental locations in New Zealand and Australia; and the Maggiore brand that provides vehicle rental services in the commercial, leisure, and insurance replacement/leasing segments with approximately 130 rental locations in Italy, as well as the France Cars brand, which offers light commercial vehicle fleets with approximately 60 rental locations in France. In addition, it is involved in the local and one-way truck rental businesses with a fleet of approximately 22,000 vehicles, which are rented through a network of approximately 1,000 dealers and 480 company-operated locations that serve the consumer and light commercial sectors in the continental United States. Further, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, automobile towing protection, and cargo insurance products. The company was formerly known as Cendant Corporation and changed its name to Avis Budget Group, Inc. in September 2006. Avis Budget Group, Inc. was founded in 1946 and is headquartered in Parsippany, New Jersey.

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