Will Zipcar (ZIP) Come Out on Top of Hertz (HTZ) and Enterprise?

Barron's notes that growing competition in hourly-rental from conventional rental-car companies like Hertz (NYSE: HTZ) and Enterprise could make it tough on Zipcar (NYSE: ZIP).

Shares of ZIP went public at $18 per share are now trade around 29 which Barron's feels is a little overvalued.

The company is in the red and Barron's comments that, "Despite its significant expansion, Zipcar's IPO prospectus warns that it doesn't 'know if our business operations will become profitable.' And it projects another loss for 2011."

Members pay $60 a year to join, and can reserve cars via phone or online for an hourly rate of $8.50 from Monday through Thursday, and $13.25 from Friday through Sunday. Daily rates are $81 during the week or $104 on Friday and weekends.

Revenue last year totaled $186 million, up from $30 million in 2006.

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