Sunbelt Rentals Holdings, Inc. (SUNB) vs United Rentals, Inc. (URI)

Sunbelt Rentals 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 $31.2B — 2.1× the size. Sunbelt Rentals Holdings, Inc. trades at the lower P/E: 22.6× against 23.1×. United Rentals, Inc. has the higher net margin (16.3% vs 12.8%) and the higher return on invested capital (11.5% vs 9.04%). Both pay a dividend; Sunbelt Rentals Holdings, Inc. yields more (1.37% vs 0.73%). Across the 19 metrics below, Sunbelt Rentals Holdings, Inc. leads on 13 and United Rentals, Inc. on 6.

Valuation

Metric SUNB URI Rental & Leasing Services median
P/E 22.62 23.05 20.11
P/S 2.82 3.73 1.11
P/B 4.21 6.73 2.44
Price to free cash flow 11.04 27.61 11.04
EV/EBITDA 11.50 10.28 8.70
EV/Sales 3.59 4.56 2.87
Earnings yield 4.42% 4.34% 3.40%
Free cash flow yield 9.06% 3.62% 0.63%

Profitability

Metric SUNB URI Rental & Leasing Services median
Gross margin 39.08% 39.08% 48.46%
Operating margin 20.78% 25.54% 8.37%
Net margin 12.82% 16.33% 1.97%
Free cash flow margin 25.55% 13.50% 2.91%
Return on equity 0.00% 30.56% 12.31%
Return on assets 12.08% 9.09% 0.88%
Return on invested capital 9.04% 11.53% 2.86%

Growth

Metric SUNB URI Rental & Leasing Services median
Revenue growth (TTM) — 9.45% 4.47%
EPS growth (last fiscal year) (11.37%) (0.21%) 1.04%
Revenue growth, 5-year CAGR — 13.55% 11.45%
Net income growth, 5-year CAGR — 22.89% 0.00%

Health

Metric SUNB URI Rental & Leasing Services median
Debt to equity 1.15 1.51 1.28
Current ratio 0.94 0.80 1.01
Net debt to EBITDA 1.68 1.94 4.19

Dividend

Metric SUNB URI Rental & Leasing Services median
Dividend yield 1.37% 0.73% 1.38%
Payout ratio 0.31 0.17 0.24

Size

Metric SUNB URI Rental & Leasing Services median
Market cap 31.20b 64.63b 3.37b

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