Hertz Global Holdings, Inc. (HTZ) vs Aaron's Holdings Company, Inc. (PRG)

Hertz Global Holdings, Inc. and Aaron's Holdings Company, Inc. are both Rental & Leasing Services companies. Aaron's Holdings Company, Inc. is the larger, with a market value of $1.3B against $630.9M — 2.1× the size. Hertz Global Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Aaron's Holdings Company, Inc. trades at 8.9×. Aaron's Holdings Company, Inc. grew revenue faster over the last twelve months: 7.96% against 3.39%. Aaron's Holdings Company, Inc. has the higher net margin (5.61% vs −3.13%) and the higher return on invested capital (8.67% vs 0.43%). Across the 18 metrics below, Aaron's Holdings Company, Inc. leads on 13 and Hertz Global Holdings, Inc. on 5.

Valuation

Metric HTZ PRG Rental & Leasing Services median
P/E n/m 8.88 19.17
P/S 0.06 0.50 0.99
P/B n/m 1.63 2.23
Price to free cash flow n/m 4.12 8.31
EV/EBITDA 14.20 1.19 7.84
EV/Sales 4.13 0.81 2.53
Earnings yield (50.57%) 11.26% 0.95%
Free cash flow yield (191.78%) 24.29% 1.43%

Profitability

Metric HTZ PRG Rental & Leasing Services median
Gross margin 36.91% 94.71% 49.40%
Operating margin 2.76% 8.49% 8.49%
Net margin (3.13%) 5.61% 1.01%
Free cash flow margin (12.01%) 12.20% 1.87%
Return on equity 49.29% 19.90% 12.13%
Return on assets (1.19%) 8.37% 0.24%
Return on invested capital 0.43% 8.67% 2.80%

Growth

Metric HTZ PRG Rental & Leasing Services median
Revenue growth (TTM) 3.39% 7.96% 3.21%
EPS growth (last fiscal year) 73.98% (20.75%) —
Revenue growth, 5-year CAGR 10.09% (0.61%) 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HTZ PRG Rental & Leasing Services median
Debt to equity (59.70) 1.10 1.48
Current ratio 1.53 4.03 1.36
Net debt to EBITDA 6.72 0.16 4.32

Dividend

Metric HTZ PRG Rental & Leasing Services median
Dividend yield — 0.40% 1.59%
Payout ratio 0.00 0.00 0.00

Size

Metric HTZ PRG Rental & Leasing Services median
Market cap 630.92m 1.30b 2.42b

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