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Financial Comparison: Avis Budget Group (NASDAQ:CAR) and InterPrivate II Acquisition (NYSE:IPVA)

Defense World ·  Sep 30, 2022 01:51

Avis Budget Group (NASDAQ:CAR – Get Rating) and InterPrivate II Acquisition (NYSE:IPVA – Get Rating) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, profitability, dividends and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Avis Budget Group and InterPrivate II Acquisition, as provided by MarketBeat.com.

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Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avis Budget Group 2 3 0 0 1.60
InterPrivate II Acquisition 0 0 0 0 N/A

Avis Budget Group currently has a consensus target price of $193.40, suggesting a potential upside of 34.70%. Given Avis Budget Group's higher possible upside, research analysts plainly believe Avis Budget Group is more favorable than InterPrivate II Acquisition.

Valuation and Earnings

This table compares Avis Budget Group and InterPrivate II Acquisition's revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avis Budget Group $9.31 billion 0.74 $1.29 billion $42.50 3.38
InterPrivate II Acquisition N/A N/A -$2.62 million N/A N/A

Avis Budget Group has higher revenue and earnings than InterPrivate II Acquisition.

Profitability

This table compares Avis Budget Group and InterPrivate II Acquisition's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avis Budget Group 21.02% -477.68% 10.38%
InterPrivate II Acquisition N/A -13,789.61% -0.01%

Insider and Institutional Ownership

98.7% of Avis Budget Group shares are held by institutional investors. Comparatively, 66.1% of InterPrivate II Acquisition shares are held by institutional investors. 37.3% of Avis Budget Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Avis Budget Group beats InterPrivate II Acquisition on 8 of the 8 factors compared between the two stocks.

About Avis Budget Group

(Get Rating)

Avis Budget Group, Inc., together with its subsidiaries, provides car and truck rentals, car sharing, and ancillary products and services to businesses and consumers. It operates the Avis brand, that offers vehicle rental and other mobility solutions to the premium commercial and leisure segments of the travel industry; the Budget Truck brand, a local, and one-way truck and cargo van rental businesses with a fleet of approximately 20,000 vehicles, which are rented through a network of approximately 465 dealer-operated and 385 company-operated locations that serve the consumer and light commercial sectors in the continental United States; and the Zipcar brand, a car sharing network. The company also operates various other car rental brands, such as Budget, Payless, Apex, Maggiore, MoriniRent, FranceCars, Amicoblue, Turiscar, and ACL Hire. In addition, it offers optional insurance products and coverages, such as supplemental liability, personal accident, personal effects protection, emergency sickness protection, and automobile towing protection and cargo insurance products; fuel service options, roadside assistance services, electronic toll collection services, curbside delivery, tablet rentals, access to satellite radio, portable navigation units, and child safety seat rentals; automobile towing equipment and other moving accessories, such as hand trucks, furniture pads, and moving supplies; and Business Intelligence solution, an online portal for corporate travel. Avis Budget Group, Inc. operates in approximately 10,400 locations worldwide. 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 headquartered in Parsippany, New Jersey.

About InterPrivate II Acquisition

(Get Rating)

InterPrivate II Acquisition Corp. does not have significant operations. The company focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization, or similar business combination with one or more businesses. It intends to focus on businesses in the auto-tech and mobility, business services, consumer, retail, e-commerce, industrial technology sectors. The company was incorporated in 2020 and is based in New York, New York.

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