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 $5.0B against $3.5B — 1.4× the size. EquipmentShare.com Inc. trades at the lower P/E: 15.4× against 40.8×. Herc Holdings Inc. has the higher net margin (2.50% vs 1.03%) and the lower return on invested capital (4.21% vs 23.5%). Across the 18 metrics below, EquipmentShare.com Inc. leads on 12 and Herc Holdings Inc. on 6.

Valuation

Metric EQPT HRI Rental & Leasing Services median
P/E 15.37 40.81 20.11
P/S 0.68 1.02 1.11
P/B 2.88 2.53 2.44
Price to free cash flow n/m 16.79 11.04
EV/EBITDA 3.36 6.65 8.70
EV/Sales 1.33 2.66 2.87
Earnings yield 6.51% 2.45% 3.40%
Free cash flow yield (48.66%) 5.95% 0.63%

Profitability

Metric EQPT HRI Rental & Leasing Services median
Gross margin 49.70% 52.64% 48.46%
Operating margin 33.57% 13.75% 8.37%
Net margin 1.03% 2.50% 1.97%
Free cash flow margin (32.95%) 6.08% 2.91%
Return on equity 0.00% 6.29% 12.31%
Return on assets 1.49% 0.88% 0.88%
Return on invested capital 23.50% 4.21% 2.86%

Growth

Metric EQPT HRI Rental & Leasing Services median
Revenue growth (TTM) — 19.38% 4.47%
EPS growth (last fiscal year) 102.08% (99.59%) 1.04%
Revenue growth, 5-year CAGR — 19.69% 11.45%
Net income growth, 5-year CAGR — (57.68%) 0.00%

Health

Metric EQPT HRI Rental & Leasing Services median
Debt to equity 3.16 4.10 1.28
Current ratio 2.42 1.08 1.01
Net debt to EBITDA 4.59 4.61 4.19

Dividend

Metric EQPT HRI Rental & Leasing Services median
Dividend yield — 1.86% 1.38%
Payout ratio — 0.76 0.24

Size

Metric EQPT HRI Rental & Leasing Services median
Market cap 3.47b 5.01b 3.37b

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