Localiza Rent a Car (OTCMKTS:LZRFY) & Boise Cascade (NYSE:BCC) Head to Head Contrast

Boise Cascade (NYSE:BCC) and Localiza Rent a Car (OTCMKTS:LZRFY) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional & Insider Ownership

96.2% of Boise Cascade shares are owned by institutional investors. 1.4% of Boise Cascade shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Boise Cascade and Localiza Rent a Car’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boise Cascade	1.64%	5.41%	3.34%
Localiza Rent a Car	7.43%	13.79%	4.18%

Analyst Recommendations

This is a breakdown of current ratings for Boise Cascade and Localiza Rent a Car, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boise Cascade	1	3	3	0	2.29
Localiza Rent a Car	0	1	0	0	2.00

Boise Cascade presently has a consensus target price of $93.40, indicating a potential upside of 22.52%. Given Boise Cascade’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Boise Cascade is more favorable than Localiza Rent a Car.

Dividends

Boise Cascade pays an annual dividend of $0.92 per share and has a dividend yield of 1.2%. Localiza Rent a Car pays an annual dividend of $0.36 per share and has a dividend yield of 3.6%. Boise Cascade pays out 31.2% of its earnings in the form of a dividend. Localiza Rent a Car pays out 60.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Boise Cascade has increased its dividend for 6 consecutive years.

Earnings & Valuation

This table compares Boise Cascade and Localiza Rent a Car”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boise Cascade	$6.40 billion	0.42	$132.84 million	$2.95	25.84
Localiza Rent a Car	$7.48 billion	1.40	$335.90 million	$0.60	16.48

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

Summary

Boise Cascade beats Localiza Rent a Car on 9 of the 16 factors compared between the two stocks.

About Boise Cascade

Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.

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.