Custom Truck One Source, Inc. (CTOS) vs Hertz Global Holdings, Inc. (HTZ)

Custom Truck One Source, Inc. and Hertz Global Holdings, Inc. are both Rental & Leasing Services companies. Custom Truck One Source, Inc. is the larger, with a market value of $2.1B against $630.9M — 3.3× the size. Hertz Global Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Custom Truck One Source, Inc. trades at 105×. Custom Truck One Source, Inc. grew revenue faster over the last twelve months: 7.03% against 3.39%. Custom Truck One Source, Inc. has the higher net margin (1.05% vs −3.13%) and the higher return on invested capital (4.12% vs 0.43%). Across the 18 metrics below, Custom Truck One Source, Inc. leads on 12 and Hertz Global Holdings, Inc. on 6.

Valuation

Metric CTOS HTZ Rental & Leasing Services median
P/E 105.00 n/m 19.17
P/S 1.06 0.06 0.99
P/B 2.63 n/m 2.23
Price to free cash flow n/m n/m 8.31
EV/EBITDA 8.64 14.20 7.84
EV/Sales 1.87 4.13 2.53
Earnings yield 0.95% (50.57%) 0.95%
Free cash flow yield (2.42%) (191.78%) 1.43%

Profitability

Metric CTOS HTZ Rental & Leasing Services median
Gross margin 22.15% 36.91% 49.40%
Operating margin 7.99% 2.76% 8.49%
Net margin 1.05% (3.13%) 1.01%
Free cash flow margin (2.55%) (12.01%) 1.87%
Return on equity 2.67% 49.29% 12.13%
Return on assets 0.60% (1.19%) 0.24%
Return on invested capital 4.12% 0.43% 2.80%

Growth

Metric CTOS HTZ Rental & Leasing Services median
Revenue growth (TTM) 7.03% 3.39% 3.21%
EPS growth (last fiscal year) (16.67%) 73.98% —
Revenue growth, 5-year CAGR 45.05% 10.09% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CTOS HTZ Rental & Leasing Services median
Debt to equity 2.03 (59.70) 1.48
Current ratio 1.34 1.53 1.36
Net debt to EBITDA 4.17 6.72 4.32

Dividend

Metric CTOS HTZ Rental & Leasing Services median
Dividend yield — — 1.59%
Payout ratio 0.00 0.00 0.00

Size

Metric CTOS HTZ Rental & Leasing Services median
Market cap 2.10b 630.92m 2.42b

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