Head-To-Head Comparison: Applied Industrial Technologies (NYSE:AIT) & Localiza Rent a Car (OTCMKTS:LZRFY)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Applied Industrial Technologies	8.35%	22.17%	13.43%
Localiza Rent a Car	5.24%	9.08%	2.77%

Dividends

Applied Industrial Technologies pays an annual dividend of $2.04 per share and has a dividend yield of 0.6%. Localiza Rent a Car pays an annual dividend of $0.34 per share and has a dividend yield of 5.3%. Applied Industrial Technologies pays out 18.6% of its earnings in the form of a dividend. Localiza Rent a Car pays out 87.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Applied Industrial Technologies has raised its dividend for 16 consecutive years.

Earnings and Valuation

This table compares Applied Industrial Technologies and Localiza Rent a Car”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Applied Industrial Technologies	$4.97 billion	2.70	$392.99 million	$10.96	33.05
Localiza Rent a Car	$7.48 billion	N/A	$335.90 million	$0.39	16.38

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Applied Industrial Technologies and Localiza Rent a Car, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Applied Industrial Technologies	0	0	7	0	3.00
Localiza Rent a Car	1	0	0	0	1.00

Applied Industrial Technologies presently has a consensus price target of $384.29, indicating a potential upside of 6.10%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Applied Industrial Technologies is more favorable than Localiza Rent a Car.

Institutional & Insider Ownership

93.5% of Applied Industrial Technologies shares are held by institutional investors. 1.6% of Applied Industrial Technologies shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Applied Industrial Technologies beats Localiza Rent a Car on 13 of the 15 factors compared between the two stocks.

About Applied Industrial Technologies

Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.

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.