Critical Review: Avis Budget Group (NASDAQ:CAR) versus Kuehne & Nagel International (OTCMKTS:KHNGY)

Kuehne & Nagel International (OTCMKTS:KHNGY) and Avis Budget Group (NASDAQ:CAR) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Earnings and Valuation

This table compares Kuehne & Nagel International and Avis Budget Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuehne & Nagel International	$29.53 billion	0.91	$1.06 billion	$1.77	25.03
Avis Budget Group	$11.65 billion	0.29	-$889.00 million	($25.39)	-3.78

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

Risk & Volatility

Kuehne & Nagel International has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500.

Insider and Institutional Ownership

96.4% of Avis Budget Group shares are owned by institutional investors. 52.8% of Avis Budget Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kuehne & Nagel International	3.57%	38.42%	7.34%
Avis Budget Group	-7.63%	N/A	-1.19%

Analyst Recommendations

This is a summary of current recommendations and price targets for Kuehne & Nagel International and Avis Budget Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuehne & Nagel International	2	3	1	0	1.83
Avis Budget Group	4	4	1	0	1.67

Avis Budget Group has a consensus price target of $124.71, indicating a potential upside of 30.06%. Given Avis Budget Group’s higher possible upside, analysts clearly believe Avis Budget Group is more favorable than Kuehne & Nagel International.

Summary

Kuehne & Nagel International beats Avis Budget Group on 9 of the 13 factors compared between the two stocks.

About Kuehne & Nagel International

Kuehne + Nagel International AG, together with its subsidiaries, provides integrated logistics services worldwide. The company operates through four segments: Sea Logistics, Air Logistics, Road Logistics, and Contract Logistics. It offers less-than-container load, reefer and project logistics, and flexible container shipping solutions. The company also provides time-critical solutions, sea-air and time-defined products, airside and air charter services, cargo insurance, and customs clearance services. In addition, it offers spare parts logistics, production, and e-commerce logistics, distribution, packaging, and process solutions. Further, the company provides supply chain consulting and order management services. It serves aerospace, automotive, mobility, consumer, healthcare, high-tech and semicon, industrial, and perishables industries. The company was founded in 1890 and is based in Schindellegi, Switzerland. Kuehne + Nagel International AG is a subsidiary of Kuehne Holding AG.

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.