Hertz vs. Avis Budget Group: Which Car Rental Stock is a Better Buy?
StockNews
Published Dec 13, 2021 03:45PM ET
Updated Dec 13, 2021 04:31PM ET
Hertz vs. Avis Budget Group: Which Car Rental Stock is a Better Buy?
The car rental market saw a major rebound in demand this year. Prominent players Avis Budget Group (NASDAQ:CAR) and Hertz (HTZ) are expected to benefit from increased pricing power and demand. But let’s find out which of these stocks is a better buy now.Avis Budget Group, Inc. (CAR) and Hertz Global Holdings (OTC:HTZGQ), Inc. (HTZ) are two prominent rental and leasing services companies. CAR provides luxury cars, specialty-use vehicles, light commercial vehicles and truck rentals, car sharing, and ancillary services to businesses and consumers. It also offers optional insurance products and coverages, fuel service options, roadside assistance services, and an online portal for corporate travel. HTZ provides vehicle rental services under the Hertz, Dollar, and Thrifty brands from company-owned, licensee, and franchisee locations internationally. It also sells vehicles and operates the Firefly vehicle rental brand and Hertz 24/7 car sharing business in international markets.
The pandemic-imposed lockdowns and travel restrictions crushed the demand in the car rental market last year, as U.S. car rental industry revenue declined 27.4% year-over-year in 2020. However, the industry rapidly recovered this year, owing to a strong vaccination drive, an increase in new car prices, and a growing interest in sustainability. Rising energy prices and growing interest in electric vehicles are incentivizing car rental companies to add more battery-powered vehicles to their fleets, which, in turn, fosters the industry’s long-term growth prospects. The global car rental market is expected to grow at 4.6% CAGR and reach $141.17 billion by 2028. So, both CAR and HTZ should benefit in the long run.
CAR is a winner with 181.6% gains versus HTZ’s 56.6% returns in terms of their past three months’ performance. But which of these stocks is a better pick now? Let us find out.
Continue reading on StockNews
Get The News You Want
Written By: StockNews
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.