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 $9.1B against $4.4B — 2.1× the size. Ryder System, Inc. trades at the lower P/E: 19.2× against 92.2×. Herc Holdings Inc. grew revenue faster over the last twelve months: 28.5% against 1.12%. Ryder System, Inc. has the higher net margin (3.87% vs 1.01%) and the higher return on invested capital (6.20% vs 4.04%). Both pay a dividend; Ryder System, Inc. yields more (2.28% vs 1.68%). Across the 23 metrics below, Ryder System, Inc. leads on 17 and Herc Holdings Inc. on 6.

Valuation

Metric HRI R Rental & Leasing Services median
P/E 92.16 19.17 19.17
P/S 0.93 0.71 0.99
P/B 2.39 3.15 2.23
Price to free cash flow 11.37 7.76 8.31
EV/EBITDA 6.52 5.69 7.84
EV/Sales 2.57 1.27 2.53
Earnings yield 1.09% 5.22% 0.95%
Free cash flow yield 8.80% 12.89% 1.43%

Profitability

Metric HRI R Rental & Leasing Services median
Gross margin 51.98% 19.82% 49.40%
Operating margin 13.12% 7.82% 8.49%
Net margin 1.01% 3.87% 1.01%
Free cash flow margin 8.20% 9.11% 1.87%
Return on equity 2.58% 16.66% 12.13%
Return on assets 0.35% 3.05% 0.24%
Return on invested capital 4.04% 6.20% 2.80%

Growth

Metric HRI R Rental & Leasing Services median
Revenue growth (TTM) 28.50% 1.12% 3.21%
EPS growth (last fiscal year) (99.59%) 7.96% —
Revenue growth, 5-year CAGR 19.69% 8.51% 12.97%
Net income growth, 5-year CAGR (57.68%) 0.00% 0.00%

Health

Metric HRI R Rental & Leasing Services median
Debt to equity 4.24 2.59 1.48
Current ratio 1.10 0.65 1.36
Net debt to EBITDA 4.61 2.56 4.32

Dividend

Metric HRI R Rental & Leasing Services median
Dividend yield 1.68% 2.28% 1.59%
Payout ratio 0.21 0.22 0.00

Size

Metric HRI R Rental & Leasing Services median
Market cap 4.38b 9.06b 2.42b

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