Avis Budget Group (NASDAQ:CAR – Get Free Report) and Senmiao Technology (NASDAQ:AIHS – Get Free Report) are both transportation companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Valuation and Earnings
This table compares Avis Budget Group and Senmiao Technology”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 | $12.01 billion | 0.30 | $1.63 billion | $10.95 | 9.36 |
| Senmiao Technology | $6.81 million | 1.41 | -$3.67 million | ($0.37) | -2.46 |
Avis Budget Group has higher revenue and earnings than Senmiao Technology. Senmiao Technology is trading at a lower price-to-earnings ratio than Avis Budget Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avis Budget Group | 0 | 4 | 4 | 0 | 2.50 |
| Senmiao Technology | 0 | 0 | 0 | 0 | 0.00 |
Avis Budget Group presently has a consensus price target of $133.13, suggesting a potential upside of 29.93%. Given Avis Budget Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Avis Budget Group is more favorable than Senmiao Technology.
Profitability
This table compares Avis Budget Group and Senmiao Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avis Budget Group | 3.34% | -101.41% | 1.19% |
| Senmiao Technology | -77.71% | -87.11% | -35.31% |
Institutional & Insider Ownership
96.4% of Avis Budget Group shares are held by institutional investors. Comparatively, 0.4% of Senmiao Technology shares are held by institutional investors. 52.0% of Avis Budget Group shares are held by insiders. Comparatively, 2.3% of Senmiao Technology shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk & Volatility
Avis Budget Group has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Senmiao Technology has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.
Summary
Avis Budget Group beats Senmiao Technology on 12 of the 14 factors compared between the two stocks.
About Avis Budget Group
Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers in the Americas, Europe, the Middle East and Africa, Asia, and Australasia. It operates the Avis brand, that offers vehicle rental and other mobility solutions to the premium commercial and leisure segments of the travel industry; and the Zipcar brand, a car sharing network, as well as the Budget brand, a supplier of vehicle rental and other mobility solutions focused primarily on more value-conscious customers comprising Budget car rental, and Budget Truck, a local, and one-way truck and cargo van rental businesses with a fleet of approximately 19,000 vehicles, which are rented through a network of dealer-operated and company-operated locations that serve the light commercial and consumer sectors in the continental United States. The company also operates various other car rental brands, such as Payless, Apex, Maggiore, Morini Rent, FranceCars, AmicoBlu, Turiscar, and ACL Hire and McNicoll Hire, as well as TurisPrime and RubyCa. In addition, 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; fuel service options, roadside assistance services, electronic toll collection services; and access to satellite radio, mobile WiFi devices, GPS navigation, and child safety seat rentals; automobile towing equipment and other moving accessories, such as hand trucks, furniture pads, and moving supplies; and Avis Budget Group Business Intelligence, an online portal complete with rental summary dashboards, visualizations, and detailed reports. 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 based in Parsippany, New Jersey.
About Senmiao Technology
Senmiao Technology Limited engages in the automobile transaction and related services business in the People's Republic of China. It operates through two segments, Automobile Transaction and Related Services, and Online Ride-Hailing Platform Services. The company offers car rental services to individual customers; and auto finance solutions through financing leases. It also engages in automobile sales comprising sale of new purchased or used cars; and the provision of supporting services, as well as auto management and guarantee services provided to online ride-hailing drivers. In addition, the company provides new energy vehicles leasing, automobile purchase, and management services, such as ride-hailing driver training, assisting with a series of administrative procedures, and other consulting services, as well as credit assessment, preparation of financing application materials, assistance with closing of financing transactions, license and plate registration, payment of taxes and fees, purchase of insurance, installation of GPS devices, ride-hailing driver qualification, and other administrative procedures. Further, it operates Xixingtianxia, an online ride-hailing platform that enables qualified ride-hailing drivers to provide transportation services mainly in Chengdu, Changsha, Guangzhou, and other 23 cities in China. The company was founded in 2014 and is based in Chengdu, the People's Republic of China.
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