Herc Holdings Inc. (HRI) vs United Rentals, Inc. (URI)

Herc Holdings Inc. and United Rentals, Inc. are both Rental & Leasing Services companies. United Rentals, Inc. is the larger, with a market value of $65.2B against $4.2B — 15.7× the size. United Rentals, Inc. trades at the lower P/E: 24.7× against 82.7×. Herc Holdings Inc. grew revenue faster over the last twelve months: 28.5% against 6.88%. United Rentals, Inc. has the higher net margin (15.7% vs 1.01%) and the higher return on invested capital (11.2% vs 4.04%). Both pay a dividend; Herc Holdings Inc. yields more (2.30% vs 0.75%). Across the 23 metrics below, United Rentals, Inc. leads on 12 and Herc Holdings Inc. on 11.

Valuation

Metric HRI URI Rental & Leasing Services median
P/E 82.70 24.72 18.17
P/S 0.84 3.83 0.92
P/B 2.15 6.98 2.15
Price to free cash flow 10.20 30.94 7.80
EV/EBITDA 6.28 10.61 7.72
EV/Sales 2.48 4.67 2.47
Earnings yield 1.21% 4.05% 1.00%
Free cash flow yield 9.80% 3.23% 1.43%

Profitability

Metric HRI URI Rental & Leasing Services median
Gross margin 51.98% 38.36% 49.40%
Operating margin 13.12% 24.79% 8.49%
Net margin 1.01% 15.67% 1.01%
Free cash flow margin 8.20% 12.37% 1.87%
Return on equity 2.58% 28.90% 12.13%
Return on assets 0.35% 8.72% 0.24%
Return on invested capital 4.04% 11.17% 2.80%

Growth

Metric HRI URI Rental & Leasing Services median
Revenue growth (TTM) 28.50% 6.88% 3.21%
EPS growth (last fiscal year) (99.59%) (0.21%) (8.44%)
Revenue growth, 5-year CAGR 19.69% 13.55% 12.97%
Net income growth, 5-year CAGR (57.68%) 22.89% 0.00%

Health

Metric HRI URI Rental & Leasing Services median
Debt to equity 4.24 1.54 1.48
Current ratio 1.10 0.76 1.36
Net debt to EBITDA 4.61 1.94 4.32

Dividend

Metric HRI URI Rental & Leasing Services median
Dividend yield 2.30% 0.75% 1.56%
Payout ratio 1.90 0.18 0.22

Size

Metric HRI URI Rental & Leasing Services median
Market cap 4.15b 65.20b 2.43b

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