Analyzing Hertz Global (OTCMKTS:HTZZ) and CSX (NASDAQ:CSX)

Hertz Global (OTCMKTS:HTZZ) and CSX (NASDAQ:CSX) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Hertz Global and CSX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hertz Global	0	0	0	0	0.00
CSX	1	7	18	0	2.65

CSX has a consensus target price of $51.31, indicating a potential upside of 2.08%. Given CSX’s stronger consensus rating and higher probable upside, analysts clearly believe CSX is more favorable than Hertz Global.

Earnings and Valuation

This table compares Hertz Global and CSX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hertz Global	N/A	N/A	N/A	$3.75	0.61
CSX	$14.09 billion	6.61	$2.89 billion	$1.73	29.06

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

Profitability

This table compares Hertz Global and CSX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hertz Global	N/A	N/A	N/A
CSX	22.21%	24.98%	7.61%

Insider and Institutional Ownership

41.7% of Hertz Global shares are owned by institutional investors. Comparatively, 73.6% of CSX shares are owned by institutional investors. 0.3% of CSX shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

CSX beats Hertz Global on 10 of the 11 factors compared between the two stocks.

About Hertz Global

Hertz Global Holdings, Inc., together with its subsidiaries, provides airport and off airport vehicle rental and leasing services. It operates through three segments: U.S. RAC, International RAC, and All Other Operations. The company provides its vehicle rental services under the Hertz, Dollar, Thrifty, Firefly, and Flexicar brands from approximately 12,000 corporate and franchisee locations in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. It rents vehicles on an hourly, daily, weekend, weekly, and monthly or multi-month basis. In addition, the company offers vehicle and lease financing; acquisition and remarketing; license, title, and registration; vehicle maintenance consultation; fuel, accident, and toll management; telematics-based location, and driver performance and scorecard reporting; and fleet management services. As of December 31, 2020, it operated a rental fleet of approximately 515,700 vehicles in the United States and 131,500 vehicles in international operations. The company serves corporate and leisure customers. Hertz Global Holdings, Inc. was founded in 1918 and is headquartered in Estero, Florida.

About CSX

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. In addition, the company provides intermodal services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; and drayage services, including the pickup and delivery of intermodal shipments. It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products, such as plastics and ethanol from rail to trucks. The company operates approximately 20,000 route mile rail network, which serves various population centers in 26 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,500 locomotives. It serves production and distribution facilities through track connections. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.