Analyzing Localiza Rent a Car (LZRFY) and Its Competitors

Localiza Rent a Car (OTCMKTS:LZRFY) is one of 159 public companies in the “Trading Companies & Distributors” industry, but how does it compare to its rivals? We will compare Localiza Rent a Car to related businesses based on the strength of its valuation, analyst recommendations, earnings, risk, profitability, institutional ownership and dividends.

Profitability

This table compares Localiza Rent a Car and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Localiza Rent a Car	5.24%	9.08%	2.77%
Localiza Rent a Car Competitors	2.87%	-33.64%	3.65%

Insider and Institutional Ownership

50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 16.7% of shares of all “Trading Companies & Distributors” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Localiza Rent a Car and its rivals, 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
Localiza Rent a Car Competitors	1408	4863	6674	227	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 4.32%. Given Localiza Rent a Car’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Localiza Rent a Car has less favorable growth aspects than its rivals.

Dividends

Localiza Rent a Car pays an annual dividend of $0.34 per share and has a dividend yield of 4.6%. Localiza Rent a Car pays out 87.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.6% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Localiza Rent a Car and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Localiza Rent a Car	$7.48 billion	$335.90 million	18.77
Localiza Rent a Car Competitors	$6.66 billion	$364.19 million	26.12

Localiza Rent a Car has higher revenue, but lower earnings than its rivals. Localiza Rent a Car is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Localiza Rent a Car rivals beat Localiza Rent a Car on 10 of the 14 factors compared.

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.