Enterprise vs Sixt Which Is More Reliable?

Enterprise Holdings Inc. and Sixt SE are two major players in the car rental industry, with both companies offering rental services globally. Enterprise, a privately-owned company, is known for its extensive fleet and customer service excellence. On the other hand, Sixt, a publicly-traded company based in Germany, has been expanding rapidly with a focus on innovation and technology. Both stocks have shown resilience in the face of economic challenges, making them attractive options for investors seeking exposure to the rental car sector.

Enterprise or Sixt?

When comparing Enterprise and Sixt, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Enterprise and Sixt.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Enterprise has a dividend yield of -%, while Sixt has a dividend yield of 7.01%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Enterprise reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Sixt reports a 5-year dividend growth of -0.49% year and a payout ratio of 77.04%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Enterprise P/E ratio at 19.38 and Sixt's P/E ratio at 11.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Enterprise P/B ratio is 2.22 while Sixt's P/B ratio is 1.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Enterprise has seen a 5-year revenue growth of 0.81%, while Sixt's is 0.24%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Enterprise's ROE at 12.38% and Sixt's ROE at 12.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1.31 for Enterprise and €54.80 for Sixt. Over the past year, Enterprise's prices ranged from $0.55 to $2.10, with a yearly change of 281.82%. Sixt's prices fluctuated between €47.25 and €68.40, with a yearly change of 44.76%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.