Major rebound was seen in the car rental market this year. The most important players Avis Budget Hertz (HTZ), as well as Group (NASDAQ:), are likely to see an increase in demand and pricing power. But let’s find out which of these stocks is a better buy now.Avis Budget Group, Inc. (CAR) and Hertz Global Holdings (OTC:), Inc. (HTZ) are two prominent rental and leasing services companies. CAR is a provider of luxury cars and specialty-use vehicle, light commercial and truck rental, car sharing and other ancillary services. CAR also provides optional insurance coverages and fuel service options. It offers roadside assistance and online portal for corporate travel. HTZ can provide vehicle rental services at company-owned and licensed franchisee locations worldwide under the Hertz Dollar or Thrifty brands. HTZ also operates and sells cars under the Firefly brand, as well as the Hertz 24/7 car-sharing business.

Pandemic travel restrictions and lockdowns impacted the rental car market. In 2020, the U.S. rental car industry revenues fell 27.4% year over year. Because of a stronger vaccination drive and an increase in car prices as well as a growing concern about sustainability, however, the rental industry has seen a rapid recovery. Rising energy prices and growing interest in electric vehicles are incentivizing car rental companies to add more battery-powered vehicles to their fleets, which, in turn, fosters the industry’s long-term growth prospects. By 2028, the global rental car market will grow by 4.6% and hit $141.17 trillion. Both CAR as well as HTZ will see long-term benefits.

CAR is a winner with 181.6% gains versus HTZ’s 56.6% returns in terms of their past three months’ performance. What stock do you think is the best? Let’s find out.

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