GATX (NYSE:GATX) vs. Localiza Rent a Car (OTCMKTS:LZRFY) Head to Head Analysis

GATX (NYSE:GATX) and Localiza Rent a Car (OTCMKTS:LZRFY) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for GATX and Localiza Rent a Car, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	2	1	0	2.33
Localiza Rent a Car	0	0	0	0	N/A

GATX currently has a consensus price target of $138.67, indicating a potential downside of 0.63%. Given GATX’s higher possible upside, research analysts clearly believe GATX is more favorable than Localiza Rent a Car.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GATX	17.76%	11.98%	2.37%
Localiza Rent a Car	N/A	N/A	N/A

Dividends

GATX pays an annual dividend of $2.32 per share and has a dividend yield of 1.7%. Localiza Rent a Car pays an annual dividend of $0.27 per share and has a dividend yield of 3.7%. GATX pays out 31.0% of its earnings in the form of a dividend. Localiza Rent a Car pays out 13.9% 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. GATX has increased its dividend for 14 consecutive years. Localiza Rent a Car is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

93.1% of GATX shares are held by institutional investors. Comparatively, 0.1% of Localiza Rent a Car shares are held by institutional investors. 1.8% of GATX shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GATX	$1.54 billion	3.22	$259.20 million	$7.48	18.66
Localiza Rent a Car	N/A	N/A	N/A	$1.96	3.76

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

Summary

GATX beats Localiza Rent a Car on 11 of the 13 factors compared between the two stocks.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.

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.