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 $64.6B against $5.0B — 12.9× the size. United Rentals, Inc. trades at the lower P/E: 23.1× against 40.8×. Herc Holdings Inc. grew revenue faster over the last twelve months: 19.4% against 9.45%. United Rentals, Inc. has the higher net margin (16.3% vs 2.50%) and the higher return on invested capital (11.5% vs 4.21%). Both pay a dividend; Herc Holdings Inc. yields more (1.86% vs 0.73%). 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 40.81 23.05 20.11
P/S 1.02 3.73 1.11
P/B 2.53 6.73 2.44
Price to free cash flow 16.79 27.61 11.04
EV/EBITDA 6.65 10.28 8.70
EV/Sales 2.66 4.56 2.87
Earnings yield 2.45% 4.34% 3.40%
Free cash flow yield 5.95% 3.62% 0.63%

Profitability

Metric HRI URI Rental & Leasing Services median
Gross margin 52.64% 39.08% 48.46%
Operating margin 13.75% 25.54% 8.37%
Net margin 2.50% 16.33% 1.97%
Free cash flow margin 6.08% 13.50% 2.91%
Return on equity 6.29% 30.56% 12.31%
Return on assets 0.88% 9.09% 0.88%
Return on invested capital 4.21% 11.53% 2.86%

Growth

Metric HRI URI Rental & Leasing Services median
Revenue growth (TTM) 19.38% 9.45% 4.47%
EPS growth (last fiscal year) (99.59%) (0.21%) 1.04%
Revenue growth, 5-year CAGR 19.69% 13.55% 11.45%
Net income growth, 5-year CAGR (57.68%) 22.89% 0.00%

Health

Metric HRI URI Rental & Leasing Services median
Debt to equity 4.10 1.51 1.28
Current ratio 1.08 0.80 1.01
Net debt to EBITDA 4.61 1.94 4.19

Dividend

Metric HRI URI Rental & Leasing Services median
Dividend yield 1.86% 0.73% 1.38%
Payout ratio 0.76 0.17 0.24

Size

Metric HRI URI Rental & Leasing Services median
Market cap 5.01b 64.63b 3.37b

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