Head-To-Head Survey: Herc (HRI) vs. WillScot (WSC)

Herc (NYSE: HRI) and WillScot (NASDAQ:WSC) are both small-cap transportation companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Herc and WillScot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Herc 10.54% 4.61% 0.50%
WillScot N/A N/A N/A

Institutional & Insider Ownership

94.8% of Herc shares are owned by institutional investors. Comparatively, 39.8% of WillScot shares are owned by institutional investors. 0.5% of Herc shares are owned by company insiders. Comparatively, 66.3% of WillScot shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Herc and WillScot, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Herc 1 2 4 0 2.43
WillScot 0 0 3 0 3.00

Herc presently has a consensus price target of $56.83, suggesting a potential downside of 6.39%. WillScot has a consensus price target of $15.33, suggesting a potential upside of 28.31%. Given WillScot’s stronger consensus rating and higher probable upside, analysts clearly believe WillScot is more favorable than Herc.

Valuation and Earnings

This table compares Herc and WillScot’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Herc $1.75 billion 0.98 $160.30 million ($0.32) -189.72
WillScot $445.94 million 2.27 -$147.70 million ($3.89) -3.07

Herc has higher revenue and earnings than WillScot. Herc is trading at a lower price-to-earnings ratio than WillScot, indicating that it is currently the more affordable of the two stocks.

Summary

Herc beats WillScot on 8 of the 13 factors compared between the two stocks.

Herc Company Profile

Herc Holdings Inc., together with its subsidiaries, operates as an equipment rental supplier. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment, as well as generators, and safety supplies and expendables; and provides ProSolutions, an industry specific solution based services, such as pumping solutions, power generation, climate control, remediation and restoration, and studio and production equipment. The company also sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies; provides repair, maintenance, equipment management, and safety training services, as well as offers ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial and retail service, hospitality, healthcare, recreation, entertainment production, and special event management customers through its sales team, industry catalogs, as well as through participation and sponsorship of industry events, trade shows, and Internet. As of December 31, 2017, it operated approximately 275 locations in the United States, Canada, China, the United Kingdom, Saudi Arabia, and Qatar. Herc Holdings Inc. is based in Bonita Springs, Florida.

WillScot Company Profile

WillScot Corporation, through its subsidiaries, provides various specialty rental services in the United States, Canada, and Mexico. It is involved in the leasing and sale of mobile offices, modular buildings, and storage products. The company offers various modular space units, including panelized and stackable offices, single-wide modular space units, section modulars and redi-plex complexes, classrooms, container offices, and other modular spaces; and portable storage units, such as shipping containers with swing doors. It also provides value-added products and services, such as steps, ramps, furniture packages, damage waivers, basic appliances, Internet connectivity devices, and other amenities rental services; and delivery, site-work, installation, disassembly, unhooking and removal, and other ancillary products and services. In addition, the company sells new and used units. It serves customers in the commercial, industrial, construction, infrastructure, education, energy, natural resources, government, logistics, furniture and facilities rental, commercial real estate, and healthcare sectors primarily under the Williams Scotsman and Acton names. The company's fleet comprises approximately 95,000 modular space and portable storage units. WillScot Corporation is headquartered in Baltimore, Maryland.

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