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 $4.4B against $3.2B — 1.4× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; Herc Holdings Inc. trades at 92.2×. Herc Holdings Inc. grew revenue faster over the last twelve months: 28.5% against −2.51%. Herc Holdings Inc. has the higher net margin (1.01% vs −3.00%) and the higher return on invested capital (4.04% vs 2.13%). Across the 21 metrics below, Herc Holdings Inc. leads on 15 and WillScot Holdings Corporation on 6.

Valuation

Metric HRI WSC Rental & Leasing Services median
P/E 92.16 n/m 19.17
P/S 0.93 1.43 0.99
P/B 2.39 3.61 2.23
Price to free cash flow 11.37 8.87 8.31
EV/EBITDA 6.52 11.94 7.84
EV/Sales 2.57 2.95 2.53
Earnings yield 1.09% (2.04%) 0.95%
Free cash flow yield 8.80% 11.28% 1.43%

Profitability

Metric HRI WSC Rental & Leasing Services median
Gross margin 51.98% 64.16% 49.40%
Operating margin 13.12% 6.51% 8.49%
Net margin 1.01% (3.00%) 1.01%
Free cash flow margin 8.20% 16.18% 1.87%
Return on equity 2.58% (7.08%) 12.13%
Return on assets 0.35% (1.15%) 0.24%
Return on invested capital 4.04% 2.13% 2.80%

Growth

Metric HRI WSC Rental & Leasing Services median
Revenue growth (TTM) 28.50% (2.51%) 3.21%
EPS growth (last fiscal year) (99.59%) (293.33%) —
Revenue growth, 5-year CAGR 19.69% 12.38% 12.97%
Net income growth, 5-year CAGR (57.68%) 0.00% 0.00%

Health

Metric HRI WSC Rental & Leasing Services median
Debt to equity 4.24 3.84 1.48
Current ratio 1.10 0.81 1.36
Net debt to EBITDA 4.61 5.73 4.32

Dividend

Metric HRI WSC Rental & Leasing Services median
Dividend yield 1.68% — 1.59%
Payout ratio 0.21 0.00 0.00

Size

Metric HRI WSC Rental & Leasing Services median
Market cap 4.38b 3.22b 2.42b

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