Localiza Rent a Car (LZRFY) versus The Competition Financial Review

Localiza Rent a Car (OTCMKTS:LZRFY) is one of 158 public companies in the “Trading Companies & Distributors” industry, but how does it weigh in compared to its competitors? We will compare Localiza Rent a Car to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 16.9% of shares of all “Trading Companies & Distributors” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Localiza Rent a Car and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Localiza Rent a Car	1	0	0	0	1.00
Localiza Rent a Car Competitors	1424	4869	6662	220	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 15.38%. Given Localiza Rent a Car’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Localiza Rent a Car has less favorable growth aspects than its competitors.

Profitability

This table compares Localiza Rent a Car and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Localiza Rent a Car	7.43%	13.79%	4.18%
Localiza Rent a Car Competitors	0.71%	-34.50%	3.15%

Dividends

Localiza Rent a Car pays an annual dividend of $0.34 per share and has a dividend yield of 4.8%. Localiza Rent a Car pays out 56.7% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 3.0% and pay out 36.6% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Localiza Rent a Car and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Localiza Rent a Car	$7.48 billion	$335.90 million	11.85
Localiza Rent a Car Competitors	$6.50 billion	$365.60 million	20.62

Localiza Rent a Car has higher revenue, but lower earnings than its competitors. Localiza Rent a Car is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Localiza Rent a Car competitors beat Localiza Rent a Car on 9 of the 14 factors compared.

About Localiza Rent a Car

Localiza Rent a Car S.A. engages in car and fleet rental business. The company is also involved in granting franchises; sale of decommissioned and used cars; provision of sundry automotive, and travel and tourism services; and managing claims for insurance companies, as well as provision of tracking and telemetry services. It operates car rental agencies in Brazil, Argentina, Colombia, Ecuador, and Paraguay. The company serves individuals and legal entities. Localiza Rent a Car S.A. was founded in 1973 and is headquartered in Belo Horizonte, Brazil.