![]() ![]() Its PEG ratio is a puny 0.2, and its forward P-E is a little over 2, suggesting that this is a very undervalued stock. With a market cap of only about $1.5 billion, CAR is trading around $14.50 - 73% above its 52-week low last October. Test drives of as long as three days are available for a nominal rental fee. Now the company is working to enhance that edge with the “Ultimate Test Drive.” Launched on Wednesday, the program allows prospective buyers of former rental vehicles to schedule free, two-hour test drives through AutoNation (NYSE: AN). Rental-vehicle sales always have been a key part of CAR’s business model. Avis Budget’s 2011 sales were nearly $6 billion, a rise of 14% over 2010.Įdge: Vehicle sales. Avis Budget GroupĪvis Budget (NYSE: CAR) ranks third, with about 450,000 vehicles and 10,000 rental locations in 175 countries, though most of its rental operations are in North America, Europe and Australia. It has a price-to-earnings-growth (PEG) ratio of 0.4, indicating that it is undervalued. With a market cap of $5.3 billion, HTZ is trading a little under $13, 64% below its 52-week low last October. 1 in vehicle options, reliability, business travel, leisure travel and eight other survey categories. Hertz won top honors in Zagat’s best-car-rental-company survey last month, the first such survey the food-and-travel-rating company has published since 1997. HTZ posted about $8.3 billion in sales last year, an increase of nearly 10% over 2010.Įdge: Vehicles and service. Hertz (NYSE: HTZ), which includes Advantage Rent-A-Car, ranks second, with nearly 600,000 vehicles at more than 8,600 locations in 150 countries. But since Enterprise is not publicly traded, investors have no way in. Enterprise is the largest company in the space, and bigger is often better when it comes to economies of scale. ![]() The company had $14.1 billion in sales last fiscal year - nearly 12% higher than in 2010.Įdge: Size. Privately held Enterprise Holdings, which includes the Alamo, National and Enterprise brands, is the largest car-rental chain in the U.S., with nearly 1 million cars in service at more than 7,700 U.S. The bad news is that the times and trends have changed, so auto-rental companies’ business models must change, too. The good news for investors in car-rental stocks such as Avis Budget Group (NYSE: CAR), Hertz (NYSE: HTZ), Dollar Thrifty (NYSE: DTG) and hourly rental innovator Zipcar (NASDAQ: ZIP) is that the market is staging a comeback after sluggish rates early this year. The companies that best shape their business models to fit today’s market trends and customers will be best poised to reward their shareholders. More competition - including from new, nontraditional players - is forcing rental companies to shift gears. But today’s car-rental market is far different than it has been in years past. As summer kicks off in earnest and more consumers take to the road, car-rental companies aim to take advantage of this prime vacation season. ![]()
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