Herc Holdings Inc. (HRI) vs Sunbelt Rentals Holdings, Inc. (SUNB)

Herc Holdings Inc. and Sunbelt Rentals Holdings, Inc. are both Rental & Leasing Services companies. Sunbelt Rentals Holdings, Inc. is the larger, with a market value of $31.2B against $5.0B — 6.2× the size. Sunbelt Rentals Holdings, Inc. trades at the lower P/E: 22.6× against 40.8×. Sunbelt Rentals Holdings, Inc. has the higher net margin (12.8% vs 2.50%) and the higher return on invested capital (9.04% vs 4.21%). Both pay a dividend; Herc Holdings Inc. yields more (1.86% vs 1.37%). Across the 20 metrics below, Sunbelt Rentals Holdings, Inc. leads on 12 and Herc Holdings Inc. on 8.

Valuation

Metric HRI SUNB Rental & Leasing Services median
P/E 40.81 22.62 20.11
P/S 1.02 2.82 1.11
P/B 2.53 4.21 2.44
Price to free cash flow 16.79 11.04 11.04
EV/EBITDA 6.65 11.50 8.70
EV/Sales 2.66 3.59 2.87
Earnings yield 2.45% 4.42% 3.40%
Free cash flow yield 5.95% 9.06% 0.63%

Profitability

Metric HRI SUNB Rental & Leasing Services median
Gross margin 52.64% 39.08% 48.46%
Operating margin 13.75% 20.78% 8.37%
Net margin 2.50% 12.82% 1.97%
Free cash flow margin 6.08% 25.55% 2.91%
Return on equity 6.29% 0.00% 12.31%
Return on assets 0.88% 12.08% 0.88%
Return on invested capital 4.21% 9.04% 2.86%

Growth

Metric HRI SUNB Rental & Leasing Services median
Revenue growth (TTM) 19.38% — 4.47%
EPS growth (last fiscal year) (99.59%) (11.37%) 1.04%
Revenue growth, 5-year CAGR 19.69% — 11.45%
Net income growth, 5-year CAGR (57.68%) — 0.00%

Health

Metric HRI SUNB Rental & Leasing Services median
Debt to equity 4.10 1.15 1.28
Current ratio 1.08 0.94 1.01
Net debt to EBITDA 4.61 1.68 4.19

Dividend

Metric HRI SUNB Rental & Leasing Services median
Dividend yield 1.86% 1.37% 1.38%
Payout ratio 0.76 0.31 0.24

Size

Metric HRI SUNB Rental & Leasing Services median
Market cap 5.01b 31.20b 3.37b

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