Comparing Grupo Aeroportuario Del Pacifico (NYSE:PAC) & Avis Budget Group (NASDAQ:CAR)

Grupo Aeroportuario Del Pacifico (NYSE:PAC) and Avis Budget Group (NASDAQ:CAR) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Grupo Aeroportuario Del Pacifico and Avis Budget Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Aeroportuario Del Pacifico	0	4	2	0	2.33
Avis Budget Group	5	5	0	0	1.50

Avis Budget Group has a consensus price target of $125.00, indicating a potential downside of 14.24%. Given Avis Budget Group’s higher possible upside, analysts clearly believe Avis Budget Group is more favorable than Grupo Aeroportuario Del Pacifico.

Volatility and Risk

Grupo Aeroportuario Del Pacifico has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500.

Institutional and Insider Ownership

11.7% of Grupo Aeroportuario Del Pacifico shares are held by institutional investors. Comparatively, 96.4% of Avis Budget Group shares are held by institutional investors. 50.5% of Avis Budget Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Grupo Aeroportuario Del Pacifico and Avis Budget Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Aeroportuario Del Pacifico	$2.16 billion	5.76	$499.30 million	$11.16	22.05
Avis Budget Group	$11.65 billion	0.44	-$889.00 million	($19.05)	-7.65

Grupo Aeroportuario Del Pacifico has higher earnings, but lower revenue than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than Grupo Aeroportuario Del Pacifico, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Grupo Aeroportuario Del Pacifico and Avis Budget Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Aeroportuario Del Pacifico	25.04%	43.12%	12.01%
Avis Budget Group	-5.68%	N/A	-0.47%

Summary

Grupo Aeroportuario Del Pacifico beats Avis Budget Group on 9 of the 14 factors compared between the two stocks.

About Grupo Aeroportuario Del Pacifico

Grupo Aeroportuario del Pacífico, S.A.B. de C.V., together with its subsidiaries, holds concessions to develop, operate, and manage airports in Mexico and Jamaica. The company operates twelve international airports in Guadalajara and Tijuana areas, Mexico; and two international airports in Montego Bay, Jamaica. It also offers aeronautical services, such as passenger, aircraft landing, parking, airport security, and passenger walkway and airport bus, as well as car packing charges; complementary services, including baggage handling, catering, aircraft maintenance and repair, and fuel; cargo handling; and ground transportation services. In addition, the company provides non-aeronautical services, such as redesigning and modernizing terminal spaces and developing new projects; telephone and internet services; and ground handling services under the brand Primesky, as well as advertising services. Further, it engages in commercial activities comprising leasing space in terminals to airlines and other service providers; to retail stores, such as souvenir and gift shops, fashion and footwear stores, pharmacies, jewelry, electronics, cosmetics, and others; to various food and beverage services; car rental service companies, including parking spots, lots, and car rental reservation booths; to timeshare developers; to financial service providers; and to operators of duty-free stores. Additionally, the company operates parking facilities; VIP lounges; convenience stores; and vending machines. The company was incorporated in 1998 and is headquartered in Guadalajara, Mexico.

About Avis Budget Group

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.