Head to Head Comparison: Core & Main (NYSE:CNM) versus Localiza Rent a Car (OTCMKTS:LZRFY)

Localiza Rent a Car (OTCMKTS:LZRFY) and Core & Main (NYSE:CNM) are both mid-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Insider & Institutional Ownership

94.2% of Core & Main shares are owned by institutional investors. 1.5% of Core & Main shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Localiza Rent a Car and Core & Main’s 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%
Core & Main	5.96%	25.98%	8.53%

Analyst Recommendations

This is a summary of recent ratings for Localiza Rent a Car and Core & Main, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Localiza Rent a Car	0	1	0	0	2.00
Core & Main	1	5	7	0	2.46

Core & Main has a consensus target price of $54.40, suggesting a potential upside of 23.05%. Given Core & Main’s stronger consensus rating and higher probable upside, analysts clearly believe Core & Main is more favorable than Localiza Rent a Car.

Valuation & Earnings

This table compares Localiza Rent a Car and Core & Main”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Localiza Rent a Car	$7.48 billion	0.74	$335.90 million	$0.60	8.70
Core & Main	$7.65 billion	1.10	$441.00 million	$2.43	18.19

Core & Main has higher revenue and earnings than Localiza Rent a Car. Localiza Rent a Car is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.

Summary

Core & Main beats Localiza Rent a Car on 12 of the 13 factors compared between the two stocks.

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.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.