HRI vs. GATX, R, CAR, ALK, SNDR, CPA, STNG, MATX, AL, and FRO
Should you be buying Herc stock or one of its competitors? The main competitors of Herc include GATX (GATX), Ryder System (R), Avis Budget Group (CAR), Alaska Air Group (ALK), Schneider National (SNDR), Copa (CPA), Scorpio Tankers (STNG), Matson (MATX), Air Lease (AL), and Frontline (FRO). These companies are all part of the "transportation" sector.
GATX (NYSE:GATX) and Herc (NYSE:HRI) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, media sentiment, analyst recommendations, institutional ownership, community ranking, earnings and dividends.
GATX has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Herc has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500.
GATX has a net margin of 18.37% compared to GATX's net margin of 10.58%. GATX's return on equity of 30.21% beat Herc's return on equity.
93.1% of GATX shares are held by institutional investors. Comparatively, 93.1% of Herc shares are held by institutional investors. 2.0% of GATX shares are held by company insiders. Comparatively, 1.7% of Herc shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Herc has higher revenue and earnings than GATX. Herc is trading at a lower price-to-earnings ratio than GATX, indicating that it is currently the more affordable of the two stocks.
GATX received 59 more outperform votes than Herc when rated by MarketBeat users. However, 59.29% of users gave Herc an outperform vote while only 58.71% of users gave GATX an outperform vote.
GATX pays an annual dividend of $2.32 per share and has a dividend yield of 1.8%. Herc pays an annual dividend of $2.66 per share and has a dividend yield of 1.7%. GATX pays out 32.4% of its earnings in the form of a dividend. Herc pays out 22.0% 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. GATX has increased its dividend for 14 consecutive years and Herc has increased its dividend for 3 consecutive years. GATX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
GATX presently has a consensus target price of $135.00, suggesting a potential upside of 7.31%. Herc has a consensus target price of $152.50, suggesting a potential downside of 0.81%. Given Herc's stronger consensus rating and higher probable upside, research analysts plainly believe GATX is more favorable than Herc.
In the previous week, GATX and GATX both had 18 articles in the media. Herc's average media sentiment score of 0.54 beat GATX's score of 0.54 indicating that GATX is being referred to more favorably in the media.
Summary
GATX beats Herc on 11 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding HRI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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