Contrasting Lyft (NASDAQ:LYFT) and Hertz Global (NASDAQ:HTZWW)

Lyft (NASDAQ:LYFT) and Hertz Global (NASDAQ:HTZWW) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Profitability

This table compares Lyft and Hertz Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lyft	42.32%	-1.20%	-0.36%
Hertz Global	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Lyft and Hertz Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lyft	2	23	13	0	2.29
Hertz Global	0	0	0	0	0.00

Lyft presently has a consensus price target of $19.77, indicating a potential upside of 18.27%. Given Lyft’s stronger consensus rating and higher possible upside, equities analysts plainly believe Lyft is more favorable than Hertz Global.

Valuation & Earnings

This table compares Lyft and Hertz Global”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lyft	$6.32 billion	1.00	$2.84 billion	$6.88	2.43
Hertz Global	$8.91 billion	N/A	N/A	N/A	N/A

Lyft has higher earnings, but lower revenue than Hertz Global.

Insider and Institutional Ownership

83.1% of Lyft shares are held by institutional investors. 0.9% of Lyft shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Lyft beats Hertz Global on 6 of the 9 factors compared between the two stocks.

About Lyft

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.

About Hertz Global

Hertz Global Holdings, Inc. operates as a vehicle rental company. The company operates through two segments, Americas Rental Car and International Rental Car. It offers vehicle rental services under the Hertz, Dollar, and Thrifty brands from company-operated, licensee, and franchisee locations in the United States, Africa, Asia, Australia, Canada, the Caribbean, Europe, Latin America, the Middle East, and New Zealand. The company sells vehicles and value-added services. Hertz Global Holdings, Inc. was founded in 1918 and is headquartered in Estero, Florida.