Comparing Localiza Rent a Car (LZRFY) and The Competition

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

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	N/A	N/A	N/A
Localiza Rent a Car Competitors	2.82%	-34.23%	3.61%

Valuation & Earnings

This table compares Localiza Rent a Car and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Localiza Rent a Car	N/A	N/A	18.74
Localiza Rent a Car Competitors	$6.39 billion	$355.21 million	24.21

Localiza Rent a Car’s competitors have higher revenue and earnings than Localiza Rent a Car. 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Localiza Rent a Car and its competitors, as reported by MarketBeat.

	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	1400	4848	6642	222	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 9.45%. 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.

Insider and Institutional Ownership

0.1% of Localiza Rent a Car shares are held by institutional investors. Comparatively, 50.8% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 16.7% 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 company is poised for long-term growth.

Dividends

Localiza Rent a Car pays an annual dividend of $0.34 per share and has a dividend yield of 4.7%. Localiza Rent a Car pays out 87.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.5% of their earnings in the form of a dividend.

Summary

Localiza Rent a Car competitors beat Localiza Rent a Car on 11 of the 13 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.