Herc Holdings Inc. (HRI) vs Ryder System, Inc. (R)

Herc Holdings Inc. and Ryder System, Inc. are both Rental & Leasing Services companies. Ryder System, Inc. is the larger, with a market value of $10.3B against $5.0B — 2.1× the size. Ryder System, Inc. trades at the lower P/E: 20.6× against 40.8×. Herc Holdings Inc. grew revenue faster over the last twelve months: 19.4% against 3.16%. Ryder System, Inc. has the higher net margin (3.98% vs 2.50%) and the higher return on invested capital (6.45% vs 4.21%). Both pay a dividend; Herc Holdings Inc. yields more (1.86% vs 1.39%). Across the 23 metrics below, Ryder System, Inc. leads on 16 and Herc Holdings Inc. on 7.

Valuation

Metric HRI R Rental & Leasing Services median
P/E 40.81 20.57 20.11
P/S 1.02 0.79 1.11
P/B 2.53 3.47 2.44
Price to free cash flow 16.79 7.16 11.04
EV/EBITDA 6.65 6.00 8.70
EV/Sales 2.66 1.33 2.87
Earnings yield 2.45% 4.86% 3.40%
Free cash flow yield 5.95% 13.96% 0.63%

Profitability

Metric HRI R Rental & Leasing Services median
Gross margin 52.64% 19.58% 48.46%
Operating margin 13.75% 7.87% 8.37%
Net margin 2.50% 3.98% 1.97%
Free cash flow margin 6.08% 11.02% 2.91%
Return on equity 6.29% 17.13% 12.31%
Return on assets 0.88% 3.18% 0.88%
Return on invested capital 4.21% 6.45% 2.86%

Growth

Metric HRI R Rental & Leasing Services median
Revenue growth (TTM) 19.38% 3.16% 4.47%
EPS growth (last fiscal year) (99.59%) 7.96% 1.04%
Revenue growth, 5-year CAGR 19.69% 8.51% 11.45%
Net income growth, 5-year CAGR (57.68%) 0.00% 0.00%

Health

Metric HRI R Rental & Leasing Services median
Debt to equity 4.10 2.42 1.28
Current ratio 1.08 0.67 1.01
Net debt to EBITDA 4.61 2.56 4.19

Dividend

Metric HRI R Rental & Leasing Services median
Dividend yield 1.86% 1.39% 1.38%
Payout ratio 0.76 0.29 0.24

Size

Metric HRI R Rental & Leasing Services median
Market cap 5.01b 10.33b 3.37b

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