Critical Analysis: Localiza Rent a Car (OTCMKTS:LZRFY) and Core & Main (NYSE:CNM)

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

Earnings & Valuation

This table compares Core & Main 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
Core & Main	$7.65 billion	1.12	$441.00 million	$2.43	18.49
Localiza Rent a Car	$7.48 billion	0.71	$335.90 million	$0.60	8.35

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.

Insider & Institutional Ownership

94.2% of Core & Main shares are held by institutional investors. 1.5% of Core & Main shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.96%	25.98%	8.53%
Localiza Rent a Car	7.43%	13.79%	4.18%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	1	5	8	0	2.50
Localiza Rent a Car	0	1	0	0	2.00

Core & Main presently has a consensus price target of $54.27, indicating a potential upside of 20.78%. Given Core & Main’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Core & Main is more favorable than Localiza Rent a Car.

Summary

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

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.

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.