What is Enterprise’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Enterprise Rent-A-Car because it is a private company. However, Hertz (NASDAQ: HTZ), Avis (NASDAQ: CAR), and Expedia (NASDAQ: EXPE) are car rental stocks that traders can invest in.
Is owning a car too expensive due to parking, insurance, constant maintenance, and other recurring expenses? Would you rather rent it for the weekend for a reasonable price instead of worrying about all these extra costs? Thankfully, companies such as Enterprise Rent-A-Car and its numerous competitors exist to make our lives so much easier. They have locations in major global cities and even pick you up at the airport as soon as your flight arrives.
I must have rented at least 50 cars, and it’s been a pleasant experience most of the time. Whether you’re looking to rent one of Enterprise’s cars or you’re looking to invest in the company or its peers, here’s everything you need to know.
Table of Contents
Enterprise Introduction (No Stock Symbol)
Jack Taylor founded Enterprise Rent-A-Car in 1957 in St. Louis, Missouri. It was initially named Executive Leasing Company but was renamed Enterprise in 1969 because Jack served on a USS Enterprise during World War II.
Enterprise began with a focus on long-term leasing rather than short-term rentals. The company could have more success if it diversified its rental timelines. First, it began providing rental cars in St. Louis to individuals whose vehicles got stolen or undergoing repairs.
In 1970, Enterprise began expanding in Atlanta, Florida, and Texas. Soon enough, the company offered short-term rentals nationwide in major cities and airports. Can you buy Enterprise stock?
Acquisitions
Let’s fast-forward to 2007. Enterprise wanted to capitalize on the growing amount of travelers. The company acquired Alamo Rent a Car and National Car Rental to remain competitive. These acquisitions allowed Enterprise to enter the airport rental market more aggressively and broaden its customer base.
Enterprise also ventured into other transportation services, including commercial fleet management and used car sales under the Enterprise Car Sales brand. In recent years, Enterprise has continued to innovate by introducing services like Enterprise CarShare, a car-sharing program, and expanding its international presence.
Today, the company operates over 9500 locations across more than 100 countries and has the largest vehicle fleet size in the world. If you could trade Enterprise stock, they’d probably be a successful buy.
EVs
Like many rental companies, Enterprise now offers electric models such as the Tesla Model S and X, Porsche Taycan, Mercedes Benz EQS, Jaguar I-PACE, and more.
Out of the 2.3M vehicles comprising Enterprise’s fleet, about 30,000 are EVs (1.3%). Considering how that would affect Enterprise stock if they had one is interesting.
Enterprise Stock Financials and IPO
Enterprise Rent-A-Car is part of Enterprise Holdings, a privately held company that has not undergone an IPO and remains family-owned. Unfortunately for investors, there aren’t any signs of an eventual IPO. The family intends to keep the business for the moment.
Since Enterprise isn’t a public company, it doesn’t have to release quarterly earnings reports. Thankfully, we do know a couple of interesting numbers about Enterprise.
First, the company reported revenues of approximately $35B in 2023, marking a significant increase from previous years ($5B increase from 2022 alone!). The company’s diversified services contribute to its growth, including car rentals, car sharing, truck rentals, fleet management, and used car sales.
Enterprise Rent-A-Car fought the pandemic (who rents a car during the pandemic?) and is today the 7th largest private US company by revenue. How did its public competitors fare? Let’s find out.
Enterprise Stock Competitors
Enterprise faces competition primarily from two major companies in the car rental industry: Hertz and Avis. They are tough competitors.
However, Enterprise has a much bigger market position and diverse revenue streams. However you can’t trade Enterprise stock, but you can trade the companies listed below.
1. Hertz Global Holdings (NASDAQ: HTZ)
We begin with Hertz (which also operates Dollar, Thrifty, and Firefly rentals), which has faced significant challenges in recent years. In 2020, the company filed for bankruptcy, but it was rescued by Knighthead Capital Management and Certares Management thanks to $5.9B in capital. Once it filed for a new IPO in 2021, Hertz’s management surprised the entire industry by promising to buy 100,000 Teslas, 175,000 GM EVs, and 65,000 from Polestar. Its strategy was to become a leader in the EV rental market.
EV issues
What went wrong with Hertz? Hertz believed that renters who can’t afford to buy an EV would love to rent one. They were right, but they forgot that driving an EV for long distances remains an issue due to charging. Hertz also charged ridiculous fees for uncharged vehicles and didn’t provide its clients with charging stations. After purchasing nearly 65,000 EVs, the management realized too late that their bold electric strategy wasn’t working. As Elon Musk decided to lower the prices of Teslas, Hertz had to sell 20,000 EVs from its fleet for a loss.
Stock issues
After returning from bankruptcy, Hertz seems to be nosediving straight into it. The company had 5 CEOs in the last four years, recently reported a negative EPS (-1.44), missed all analysts’ expectations, and its stock is setting new weekly lows. It doesn’t seem that the company is moving in the right direction and will need serious changes to remain alive and competitive.
2. Avis Budget Group (NASDAQ: CAR)
Let’s get back on track with Avis, which also operates Budget car and truck rentals, Payless, Zipcar, and many regional rentals. The company operates in over 180 countries with a fleet of around 655,000 vehicles.
Like Hertz, Avis missed its latest earnings projections and is trading near a 52-week low (August 2024). In Q2 2024, it reported revenues of $3.05B, a 2.4% decrease YoY, but expected to grow by 3-4% in the upcoming years.
That number is seriously disappointing in comparison to other sectors and industries in the stock market. One of the main reasons Avis is struggling is due to the rise of car-sharing services.
They offer more flexibility and are more convenient than rental shops. You can pick up or return the car can be picked no matter the time. There is also a combination of rising interest rates and less spending power, which limits consumers’ spending. As a result, this is a good Enterprise stock alternative.
3. Expedia Group (NASDAQ: EXPE)
The last two companies on this list aren’t car rentals, but they offer car rentals through their application. We begin with Expedia, an online platform where consumers can search for and book car rentals alongside other travel services. Expedia allows people to compare prices and availability across multiple car rental providers.
It’s a safe business model because Expedia owns no cars but gets commissions from the bookings. From experience, the cars listed on the platform are generally cheaper than directly from Avis, Enterprise, Hertz, and other companies.
Expedia and Avis are two distinct businesses, but they’re both travel-oriented. Both companies bring in around the same revenue, but Expedia is doing much better.
Its recent earnings are positive, and its long-term outlook is promising. The platform isn’t perfect, but it has some good deals if you’re looking for a rental car for your trip or a last-minute getaway.
4. Booking Holdings (NASDAQ: BKNG)
We conclude this section with Booking. It is one of the most expensive stocks in the US (currently just shy of $3700, but it had traded over $4000).
Users can book rental cars directly on the platform (they’re usually a little more expensive than Expedia) or use one of its affiliates, such as Rentalcars.com. Like Expedia, travelers can bundle their entire trip on one platform and benefit from certain discounts.
It’s a simple and convenient way to plan your trip. Booking is also very popular among investors thanks to consistent growth and a small dividend (0.96% annual yield).
Final Thoughts: Enterprise Stock
To conclude, Enterprise is a family-owned car rental company that has diversified its core business in the last few years and has brought in more revenue than ever ($35B).
Unfortunately for investors, the company remains private, and there aren’t any signs pointing towards an IPO. However, Enterprise Stock has some competitors who are traded on the stock market in the US (Avis and Hertz), but their business isn’t exactly thriving.
You can always visit Expedia or Booking if you’re looking for travel companies in the same field. There are better options on the stock market, but they have performed well enough and can help you diversify your portfolio.
If you want to learn more about profiting from the stock market, head to our free library of educational courses. We have something for everyone, including trading options for those with small accounts.
Frequently Asked Questions
Enterprise, which also owns Alamo and National, is a private company that doesn’t trade on the stock market.
The Taylor family owns Enterprise. It is the 7th largest private company in the US and the largest private company in the St Louis Area.
The Taylor family isn’t interested (for the moment) in going public.
Enterprise is the world’s largest car rental company.
