Critical Contrast: Avis Budget Group (NASDAQ:CAR) & TFI International (NYSE:TFII)

TFI International (NYSE:TFII) and Avis Budget Group (NASDAQ:CAR) are both transportation companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Profitability

This table compares TFI International and Avis Budget Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TFI International	3.79%	13.43%	4.88%
Avis Budget Group	-5.68%	N/A	-0.47%

Volatility and Risk

TFI International has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500.

Valuation and Earnings

This table compares TFI International 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
TFI International	$7.88 billion	1.66	$310.55 million	$3.59	44.43
Avis Budget Group	$11.65 billion	0.54	-$889.00 million	($19.05)	-9.28

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

Analyst Ratings

This is a breakdown of current ratings for TFI International and Avis Budget Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TFI International	0	8	9	0	2.53
Avis Budget Group	5	5	0	0	1.50

TFI International presently has a consensus target price of $148.29, indicating a potential downside of 7.03%. Avis Budget Group has a consensus target price of $125.25, indicating a potential downside of 29.15%. Given TFI International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe TFI International is more favorable than Avis Budget Group.

Insider & Institutional Ownership

73.3% of TFI International shares are held by institutional investors. Comparatively, 96.4% of Avis Budget Group shares are held by institutional investors. 5.5% of TFI International shares are held by insiders. Comparatively, 50.5% of Avis Budget Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

TFI International beats Avis Budget Group on 10 of the 14 factors compared between the two stocks.

About TFI International

TFI International Inc., together with its subsidiaries, provides transportation and logistics services in the United States and Canada. The company operates through Package and Courier, Less-Than-Truckload (LTL), Truckload (TL), and Logistics segments. The Package and Courier segment engages in the pickup, transport, and delivery of items in North America. The LTL segment is involved in the pickup, consolidation, transportation, and delivery of smaller loads. The TL segment offers expedited transportation, flatbed, tank, container, and dedicated services. This segment also carries full loads directly from the customer to the destination using a closed van or specialized equipment. The Logistics segment provides asset-light logistics services, including brokerage, freight forwarding, and transportation management, as well as small package parcel delivery. As of December 31, 2023, it operates 11,455 trucks, 34,599 trailers, and 7,504 independent contractors. The company was formerly known as TransForce Inc. and changed its name to TFI International Inc. in December 2016. TFI International Inc. was founded in 1957 and is headquartered in Saint-Laurent, Canada.

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.