Head to Head Contrast: C.H. Robinson Worldwide (NASDAQ:CHRW) & Avis Budget Group (NASDAQ:CAR)

C.H. Robinson Worldwide (NASDAQ:CHRW) and Avis Budget Group (NASDAQ:CAR) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

93.2% of C.H. Robinson Worldwide shares are owned by institutional investors. Comparatively, 96.4% of Avis Budget Group shares are owned by institutional investors. 1.5% of C.H. Robinson Worldwide shares are owned by company insiders. Comparatively, 52.8% of Avis Budget Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares C.H. Robinson Worldwide and Avis Budget Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
C.H. Robinson Worldwide	$17.72 billion	0.86	$465.69 million	$4.39	29.32
Avis Budget Group	$11.79 billion	0.47	-$1.82 billion	($63.26)	-2.50

C.H. Robinson Worldwide has higher revenue and earnings than Avis Budget Group. Avis Budget Group is trading at a lower price-to-earnings ratio than C.H. Robinson Worldwide, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for C.H. Robinson Worldwide and Avis Budget Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
C.H. Robinson Worldwide	1	6	14	1	2.68
Avis Budget Group	2	4	1	0	1.86

C.H. Robinson Worldwide currently has a consensus price target of $117.24, indicating a potential downside of 8.91%. Avis Budget Group has a consensus price target of $143.80, indicating a potential downside of 9.12%. Given C.H. Robinson Worldwide’s stronger consensus rating and higher probable upside, equities analysts clearly believe C.H. Robinson Worldwide is more favorable than Avis Budget Group.

Profitability

This table compares C.H. Robinson Worldwide and Avis Budget Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
C.H. Robinson Worldwide	3.14%	35.01%	11.23%
Avis Budget Group	-19.06%	-14.74%	-0.88%

Risk & Volatility

C.H. Robinson Worldwide has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Avis Budget Group has a beta of 2.19, meaning that its stock price is 119% more volatile than the S&P 500.

Summary

C.H. Robinson Worldwide beats Avis Budget Group on 12 of the 15 factors compared between the two stocks.

About C.H. Robinson Worldwide

C.H. Robinson Worldwide, Inc., together with its subsidiaries, provides freight transportation services, and related logistics and supply chain services in the United States and internationally. It operates through two segments: North American Surface Transportation and Global Forwarding. The company offers transportation and logistics services, such as truckload, less than truckload transportation brokerage services, which include the shipment of single or multiple pallets of freight; intermodal transportation that comprises the shipment service of freight in containers or trailers by a combination of truck and rail; and non-vessel operating common carrier and freight forwarding services, as well as organizes air shipments and provides door-to-door services. It also provides customs brokerage services; and other logistics services, such as fee-based managed, warehousing, small parcel, and other services. It has contractual relationships with approximately 45,000 transportation companies, including motor carriers, railroads, and ocean and air carriers. In addition, the company is involved in the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items under the Robinson Fresh brand name. Further, the company offers transportation management services or managed TMS; and other surface transportation services. It provides its fresh produce to grocery retailers, restaurants, produce wholesalers, and foodservice distributors through a network of independent produce growers and suppliers. The company was founded in 1905 and is headquartered in Eden Prairie, Minnesota.

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.