Herc Holdings Inc. (HRI) vs WillScot Holdings Corporation (WSC)

Herc Holdings Inc. and WillScot Holdings Corporation are both Rental & Leasing Services companies. Herc Holdings Inc. is the larger, with a market value of $5.0B against $3.2B — 1.6× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; Herc Holdings Inc. trades at 40.8×. Herc Holdings Inc. grew revenue faster over the last twelve months: 19.4% against 0.44%. Herc Holdings Inc. has the higher net margin (2.50% vs −2.60%) and the higher return on invested capital (4.21% vs 2.23%). Both pay a dividend; Herc Holdings Inc. yields more (1.86% vs 1.57%). Across the 22 metrics below, Herc Holdings Inc. leads on 16 and WillScot Holdings Corporation on 6.

Valuation

Metric HRI WSC Rental & Leasing Services median
P/E 40.81 n/m 20.11
P/S 1.02 1.39 1.11
P/B 2.53 3.37 2.44
Price to free cash flow 16.79 8.57 11.04
EV/EBITDA 6.65 11.77 8.70
EV/Sales 2.66 2.87 2.87
Earnings yield 2.45% (1.85%) 3.40%
Free cash flow yield 5.95% 11.67% 0.63%

Profitability

Metric HRI WSC Rental & Leasing Services median
Gross margin 52.64% 63.84% 48.46%
Operating margin 13.75% 6.73% 8.37%
Net margin 2.50% (2.60%) 1.97%
Free cash flow margin 6.08% 30.51% 2.91%
Return on equity 6.29% (6.01%) 12.31%
Return on assets 0.88% (1.01%) 0.88%
Return on invested capital 4.21% 2.23% 2.86%

Growth

Metric HRI WSC Rental & Leasing Services median
Revenue growth (TTM) 19.38% 0.44% 4.47%
EPS growth (last fiscal year) (99.59%) (293.33%) 1.04%
Revenue growth, 5-year CAGR 19.69% 12.38% 11.45%
Net income growth, 5-year CAGR (57.68%) 0.00% 0.00%

Health

Metric HRI WSC Rental & Leasing Services median
Debt to equity 4.10 3.60 1.28
Current ratio 1.08 0.78 1.01
Net debt to EBITDA 4.61 5.73 4.19

Dividend

Metric HRI WSC Rental & Leasing Services median
Dividend yield 1.86% 1.57% 1.38%
Payout ratio 0.76 — 0.24

Size

Metric HRI WSC Rental & Leasing Services median
Market cap 5.01b 3.23b 3.37b

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