Grupo Aeroportuario del Sureste (NYSE:ASR) & Avis Budget Group (NASDAQ:CAR) Critical Contrast
by Sarita Garza · The Markets DailyGrupo Aeroportuario del Sureste (NYSE:ASR – Get Free Report) and Avis Budget Group (NASDAQ:CAR – Get Free Report) are both large-cap transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, institutional ownership, risk and valuation.
Analyst Ratings
This is a summary of recent recommendations for Grupo Aeroportuario del Sureste and Avis Budget Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Grupo Aeroportuario del Sureste | 1 | 3 | 2 | 1 | 2.43 |
| Avis Budget Group | 4 | 5 | 0 | 0 | 1.56 |
Grupo Aeroportuario del Sureste currently has a consensus target price of $300.00, suggesting a potential downside of 13.70%. Avis Budget Group has a consensus target price of $115.00, suggesting a potential downside of 61.66%. Given Grupo Aeroportuario del Sureste’s stronger consensus rating and higher possible upside, research analysts plainly believe Grupo Aeroportuario del Sureste is more favorable than Avis Budget Group.
Profitability
This table compares Grupo Aeroportuario del Sureste and Avis Budget Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Grupo Aeroportuario del Sureste | 27.93% | 21.42% | 12.72% |
| Avis Budget Group | -7.63% | N/A | -1.19% |
Risk and Volatility
Grupo Aeroportuario del Sureste has a beta of 0.58, indicating that its share price is 42% less volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.
Valuation & Earnings
This table compares Grupo Aeroportuario del Sureste and Avis Budget Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Grupo Aeroportuario del Sureste | $1.94 billion | 5.37 | $547.52 million | $18.41 | 18.88 |
| Avis Budget Group | $11.65 billion | 0.91 | -$889.00 million | ($25.39) | -11.81 |
Grupo Aeroportuario del Sureste has higher earnings, but lower revenue than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than Grupo Aeroportuario del Sureste, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
10.6% of Grupo Aeroportuario del Sureste shares are held by institutional investors. Comparatively, 96.4% of Avis Budget Group shares are held by institutional investors. 52.8% 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 will outperform the market over the long term.
Summary
Grupo Aeroportuario del Sureste beats Avis Budget Group on 11 of the 15 factors compared between the two stocks.
About Grupo Aeroportuario del Sureste
Grupo Aeroportuario del Sureste, S. A. B. de C. V. holds concessions to operate, maintain, and develop airports in the southeast region of Mexico. The company operates airports that are located in the cities of Cancún, Cozumel, Mérida, Huatulco, Oaxaca, Veracruz, Villahermosa, Tapachula, and Minatitlán. It provides aeronautical services, which include passenger, aircraft landing and parking, passenger walkway, and airport security services. The company also offers non-aeronautical services, such as leasing of space at its airports to retailers, restaurants, airlines, and other commercial tenants; catering, handling, and ground transportation services, as well as engages in the various commercial operations. In addition, it holds concessions to operate the Luis Muñoz Marín International Airport in San Juan, Puerto Rico; and various airports in Colombia, including the Enrique Olaya Herrera Airport in Medellín, the José María Córdova International Airport in Rionegro, the Los Garzones Airport in Montería, the Antonio Roldán Betancourt Airport in Carepa, the El Caraño Airport in Quibdó, and the Las Brujas Airport in Corozal. Grupo Aeroportuario del Sureste, S. A. B. de C. V. was founded in 1996 and is headquartered in Mexico City, Mexico.
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.