Lyft (NASDAQ:LYFT) & Hertz Global (OTCMKTS:HTZZ) Head-To-Head Contrast

Hertz Global (OTCMKTS:HTZZ) and Lyft (NASDAQ:LYFT) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Institutional and Insider Ownership

41.7% of Hertz Global shares are owned by institutional investors. Comparatively, 83.1% of Lyft shares are owned by institutional investors. 0.9% of Lyft shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Hertz Global and Lyft”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hertz Global	N/A	N/A	N/A	$3.75	0.59
Lyft	$6.32 billion	1.04	$2.84 billion	$6.88	2.53

Lyft has higher revenue and earnings than Hertz Global. Hertz Global is trading at a lower price-to-earnings ratio than Lyft, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and target prices for Hertz Global and Lyft, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hertz Global	0	0	0	0	0.00
Lyft	2	22	13	0	2.30

Lyft has a consensus price target of $19.80, suggesting a potential upside of 13.86%. Given Lyft’s stronger consensus rating and higher possible upside, analysts clearly believe Lyft is more favorable than Hertz Global.

Profitability

This table compares Hertz Global and Lyft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hertz Global	N/A	N/A	N/A
Lyft	42.32%	-1.20%	-0.36%

Summary

Lyft beats Hertz Global on 9 of the 11 factors compared between the two stocks.

About Hertz Global

Hertz Global Holdings, Inc., together with its subsidiaries, provides airport and off airport vehicle rental and leasing services. It operates through three segments: U.S. RAC, International RAC, and All Other Operations. The company provides its vehicle rental services under the Hertz, Dollar, Thrifty, Firefly, and Flexicar brands from approximately 12,000 corporate and franchisee locations in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. It rents vehicles on an hourly, daily, weekend, weekly, and monthly or multi-month basis. In addition, the company offers vehicle and lease financing; acquisition and remarketing; license, title, and registration; vehicle maintenance consultation; fuel, accident, and toll management; telematics-based location, and driver performance and scorecard reporting; and fleet management services. As of December 31, 2020, it operated a rental fleet of approximately 515,700 vehicles in the United States and 131,500 vehicles in international operations. The company serves corporate and leisure customers. Hertz Global Holdings, Inc. was founded in 1918 and is headquartered in Estero, Florida.

About Lyft

Lyft, Inc. operates a peer-to-peer marketplace for on-demand ridesharing in the United States and Canada. It operates multimodal transportation networks that offer access to various transportation options through the Lyft platform and mobile-based applications. The company's platform provides a ridesharing marketplace, which connects drivers with riders; Express Drive, a car rental program for drivers; and a network of shared bikes and scooters in various cities to address the needs of riders for short trips. It also offers centralized tools and enterprise transportation solutions, such as concierge transportation solutions for organizations; Lyft Pink subscription plans; Lyft Pass commuter programs; first-mile and last-mile services; and university safe rides programs. The company was formerly known as Zimride, Inc. and changed its name to Lyft, Inc. in April 2013. Lyft, Inc. was incorporated in 2007 and is headquartered in San Francisco, California.