United Rentals (NYSE:URI) vs. Holcim (OTCMKTS:HCMLY) Head-To-Head Comparison

Holcim (OTCMKTS:HCMLY) and United Rentals (NYSE:URI) are both large-cap construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Holcim and United Rentals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Holcim	N/A	N/A	N/A
United Rentals	15.83%	31.30%	9.61%

Valuation and Earnings

This table compares Holcim and United Rentals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holcim	$30.00 billion	1.83	$3.32 billion	N/A	N/A
United Rentals	$15.99 billion	3.25	$2.58 billion	$38.88	21.02

Holcim has higher revenue and earnings than United Rentals.

Analyst Ratings

This is a summary of current ratings for Holcim and United Rentals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holcim	1	4	5	2	2.67
United Rentals	1	5	12	2	2.75

Holcim currently has a consensus price target of $16.80, indicating a potential downside of 13.45%. United Rentals has a consensus price target of $954.83, indicating a potential upside of 16.83%. Given United Rentals’ stronger consensus rating and higher probable upside, analysts plainly believe United Rentals is more favorable than Holcim.

Institutional & Insider Ownership

0.0% of Holcim shares are held by institutional investors. Comparatively, 96.3% of United Rentals shares are held by institutional investors. 0.5% of United Rentals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Holcim has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500.

Dividends

Holcim pays an annual dividend of $0.39 per share and has a dividend yield of 2.0%. United Rentals pays an annual dividend of $7.16 per share and has a dividend yield of 0.9%. United Rentals pays out 18.4% of its earnings in the form of a dividend. United Rentals has increased its dividend for 3 consecutive years.

Summary

United Rentals beats Holcim on 11 of the 15 factors compared between the two stocks.

About Holcim

Holcim AG, together with its subsidiaries, operates as a building materials and solutions company worldwide. It operates through North America; Latin America; Europe; Asia, Middle East & Africa; and Solutions & Products segments. The company offers cement, clinker, and other cementitious materials; ready-mix concrete; aggregates, such as crushed stone, gravel, and sand; and precast, concrete products, asphalts, mortars, roofing systems, insulation tile adhesives, facade solutions, and contracting and services. It also engages in distribution and retail activities comprising product availability and deliveries, in-store animation and shopping experience, one-stop retail shop, digital services and solutions, and financing and cash-flow solutions; and waste management services. The company's products are used in infrastructure projects, such as tunnels, railways and train stations, airports and ports, and bridges; housing projects, including individual and collective housing; commercial projects comprising offices, retail, and public buildings; and industrial projects consisting of renewable energy, oil and gas, and mining. It sells under the ECOPact, ECOPlanet, ECOCycle, Airium, DYNAMax, Aggneo, Ductal, Hydromedia, TectorPrint, Aggregate Industries, Disensa, Duro-Last, Elevate, Geocycle, Holcim, Lafarge, Malarkey Roofing Products, and PRB Group brands. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim AG in May 2021. The company was founded in 1833 and is headquartered in Zug, Switzerland.

About United Rentals

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.