Contrasting Senmiao Technology (NASDAQ:AIHS) & Avis Budget Group (NASDAQ:CAR)

Avis Budget Group (NASDAQ:CARGet Free Report) and Senmiao Technology (NASDAQ:AIHSGet Free Report) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Insider and Institutional Ownership

96.3% of Avis Budget Group shares are owned by institutional investors. Comparatively, 0.4% of Senmiao Technology shares are owned by institutional investors. 52.0% of Avis Budget Group shares are owned by insiders. Comparatively, 1.5% of Senmiao Technology shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Avis Budget Group and Senmiao Technology, as provided by MarketBeat.com.

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 currently has a consensus price target of $133.75, indicating a potential upside of 64.33%. Given Avis Budget Group’s stronger consensus rating and higher possible upside, research analysts plainly believe Avis Budget Group is more favorable than Senmiao Technology.

Valuation & 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 $11.78 billion 0.24 $1.63 billion $10.95 7.43
Senmiao Technology $6.07 million 1.61 -$3.67 million ($0.37) -2.51

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.

Volatility and Risk

Avis Budget Group has a beta of 2.2, indicating that its share price is 120% more volatile than the S&P 500. Comparatively, Senmiao Technology has a beta of 0.78, indicating that its share price is 22% less volatile than the S&P 500.

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%

Summary

Avis Budget Group beats Senmiao Technology on 12 of the 14 factors compared between the two stocks.

About Avis Budget Group

(Get Free Report)

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 Senmiao Technology

(Get Free Report)

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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