EquipmentShare.com Inc. (EQPT) vs Herc Holdings Inc. (HRI)

EquipmentShare.com Inc. and Herc Holdings Inc. are both Rental & Leasing Services companies. Herc Holdings Inc. is the larger, with a market value of $4.2B against $3.7B — 1.1× the size. EquipmentShare.com Inc. trades at the lower P/E: 15.1× against 82.7×. EquipmentShare.com Inc. has the higher net margin (1.03% vs 1.01%) and the higher return on invested capital (23.5% vs 4.04%). Across the 18 metrics below, EquipmentShare.com Inc. leads on 13 and Herc Holdings Inc. on 5.

Valuation

Metric EQPT HRI Rental & Leasing Services median
P/E 15.14 82.70 18.17
P/S 0.67 0.84 0.92
P/B 2.84 2.15 2.15
Price to free cash flow n/m 10.20 7.80
EV/EBITDA 3.33 6.28 7.72
EV/Sales 1.32 2.48 2.47
Earnings yield 6.61% 1.21% 1.00%
Free cash flow yield (49.41%) 9.80% 1.43%

Profitability

Metric EQPT HRI Rental & Leasing Services median
Gross margin 49.70% 51.98% 49.40%
Operating margin 33.57% 13.12% 8.49%
Net margin 1.03% 1.01% 1.01%
Free cash flow margin (32.95%) 8.20% 1.87%
Return on equity 0.00% 2.58% 12.13%
Return on assets 1.49% 0.35% 0.24%
Return on invested capital 23.50% 4.04% 2.80%

Growth

Metric EQPT HRI Rental & Leasing Services median
Revenue growth (TTM) — 28.50% 3.21%
EPS growth (last fiscal year) (74.36%) (99.59%) (8.44%)
Revenue growth, 5-year CAGR — 19.69% 12.97%
Net income growth, 5-year CAGR — (57.68%) 0.00%

Health

Metric EQPT HRI Rental & Leasing Services median
Debt to equity 3.16 4.24 1.48
Current ratio 2.42 1.10 1.36
Net debt to EBITDA 4.59 4.61 4.32

Dividend

Metric EQPT HRI Rental & Leasing Services median
Dividend yield — 2.30% 1.56%
Payout ratio — 1.90 0.22

Size

Metric EQPT HRI Rental & Leasing Services median
Market cap 3.66b 4.15b 2.43b

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