WallStSmart

Herc Holdings Inc (HRI)vsUnited Rentals Inc (URI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Rentals Inc generates 247% more annual revenue ($16.83B vs $4.86B). URI leads profitability with a 15.7% profit margin vs 1.0%. HRI appears more attractively valued with a PEG of 0.05. URI earns a higher WallStSmart Score of 72/100 (B).

HRI

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 4.0Value: 4.7Quality: 2.5
Piotroski: 1/9Altman Z: 0.59

URI

Strong Buy

72

out of 100

Grade: B

Growth: 7.3Profit: 9.0Value: 5.7Quality: 4.0
Piotroski: 2/9Altman Z: 1.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HRISignificantly Overvalued (-63.9%)

Margin of Safety

-63.9%

Fair Value

$110.35

Current Price

$140.96

$30.61 premium

UndervaluedFair: $110.35Overvalued

Intrinsic value data unavailable for URI.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HRI3 strengths · Avg: 8.7/10
PEG RatioValuation
0.0510/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

URI4 strengths · Avg: 8.5/10
Market CapQuality
$61.57B9/10

Large-cap with strong market position

Return on EquityProfitability
28.6%9/10

Every $100 of equity generates 29 in profit

Operating MarginProfitability
26.0%8/10

Strong operational efficiency at 26.0%

EPS GrowthGrowth
25.5%8/10

Earnings expanding 25.5% YoY

Areas to Watch

HRI4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
86.2x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-0.3%2/10

ROE of -0.3% — below average capital efficiency

URI4 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Debt/EquityHealth
1.673/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Free Cash FlowQuality
$-261.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : HRI

The strongest argument for HRI centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.

Bull Case : URI

The strongest argument for URI centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.7% and operating margin at 26.0%. Revenue growth of 11.8% demonstrates continued momentum.

Bear Case : HRI

The primary concerns for HRI are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 86.2x leaves little room for execution misses. Debt-to-equity of 5.01 is elevated, increasing financial risk.

Bear Case : URI

The primary concerns for URI are Altman Z-Score, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

HRI profiles as a growth stock while URI is a mature play — different risk/reward profiles.

HRI carries more volatility with a beta of 1.86 — expect wider price swings.

HRI is growing revenue faster at 20.2% — sustainability is the question.

HRI generates stronger free cash flow (-179M), providing more financial flexibility.

Bottom Line

URI scores higher overall (72/100 vs 58/100), backed by strong 15.7% margins and 11.8% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Herc Holdings Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

Herc Holdings Inc. is an equipment rental provider primarily in the United States and internationally. The company is headquartered in Bonita Springs, Florida.

United Rentals Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

United Rentals, Inc. (NYSE: URI) is the world's largest equipment rental company, with about 13 percent of the North American market share as of 2019.

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