Avis Budget Group (NASDAQ:CAR – Get Free Report) and Grab (NASDAQ:GRAB – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Volatility & 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, Grab has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Avis Budget Group and Grab, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avis Budget Group | 3 | 6 | 0 | 0 | 1.67 |
| Grab | 1 | 1 | 8 | 1 | 2.82 |
Valuation & Earnings
This table compares Avis Budget Group and Grab”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 | $11.65 billion | 0.38 | -$889.00 million | ($18.17) | -6.96 |
| Grab | $3.37 billion | 3.65 | $268.00 million | $0.06 | 50.08 |
Grab has lower revenue, but higher earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than Grab, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
96.3% of Avis Budget Group shares are held by institutional investors. Comparatively, 55.5% of Grab shares are held by institutional investors. 50.5% of Avis Budget Group shares are held by insiders. Comparatively, 3.6% of Grab shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Avis Budget Group and Grab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avis Budget Group | -5.43% | N/A | -0.37% |
| Grab | 15.97% | 8.83% | 4.92% |
Summary
Grab beats Avis Budget Group on 11 of the 15 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 Grab
Grab Holdings Limited engages in the provision of superapps in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company offers its Grab ecosystem, a single platform with superapps for driver- and merchant-partners and consumers, that allows access to mobility, delivery, digital financial services, and enterprise sector offerings. Grab Holdings Limited is headquartered in Singapore.
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