Triton International (NYSE:TRTN) and Rent-A-Center (NASDAQ:RCII) are both mid-cap transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Risk and Volatility
Triton International has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, Rent-A-Center has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.
Institutional & Insider Ownership
72.2% of Triton International shares are held by institutional investors. Comparatively, 93.9% of Rent-A-Center shares are held by institutional investors. 1.7% of Triton International shares are held by company insiders. Comparatively, 0.8% of Rent-A-Center shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Triton International and Rent-A-Center's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Triton International | $1.35 billion | 2.64 | $352.69 million | $4.57 | 11.57 |
Rent-A-Center | $2.67 billion | 1.11 | $173.55 million | $2.24 | 24.28 |
Triton International has higher earnings, but lower revenue than Rent-A-Center. Triton International is trading at a lower price-to-earnings ratio than Rent-A-Center, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Triton International and Rent-A-Center, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Triton International | 0 | 0 | 3 | 0 | 3.00 |
Rent-A-Center | 0 | 1 | 5 | 1 | 3.00 |
Triton International presently has a consensus price target of $58.00, indicating a potential upside of 9.66%. Rent-A-Center has a consensus price target of $49.8333, indicating a potential downside of 8.36%. Given Triton International's higher probable upside, research analysts clearly believe Triton International is more favorable than Rent-A-Center.
Profitability
This table compares Triton International and Rent-A-Center's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Triton International | 22.11% | 15.93% | 3.30% |
Rent-A-Center | 6.95% | 35.08% | 10.71% |
Dividends
Triton International pays an annual dividend of $2.28 per share and has a dividend yield of 4.3%. Rent-A-Center pays an annual dividend of $1.24 per share and has a dividend yield of 2.3%. Triton International pays out 49.9% of its earnings in the form of a dividend. Rent-A-Center pays out 55.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Triton International has raised its dividend for 1 consecutive years and Rent-A-Center has raised its dividend for 1 consecutive years. Triton International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Triton International beats Rent-A-Center on 9 of the 16 factors compared between the two stocks.