Herc Holdings (NYSE: HRI) and eHi Car Services Limited (NYSE:EHIC) are both small-cap transportation companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.
Institutional & Insider Ownership
99.7% of Herc Holdings shares are held by institutional investors. Comparatively, 29.4% of eHi Car Services Limited shares are held by institutional investors. 0.1% of Herc Holdings shares are held by insiders. Comparatively, 12.0% of eHi Car Services Limited shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Herc Holdings and eHi Car Services Limited’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|eHi Car Services Limited||2.98%||1.68%||0.86%|
Valuation and Earnings
This table compares Herc Holdings and eHi Car Services Limited’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Herc Holdings||$1.61 billion||0.65||$108.90 million||($2.75)||-13.36|
|eHi Car Services Limited||$337.16 million||1.89||$150.61 million||$0.14||66.43|
eHi Car Services Limited has higher revenue, but lower earnings than Herc Holdings. Herc Holdings is trading at a lower price-to-earnings ratio than eHi Car Services Limited, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Herc Holdings has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500. Comparatively, eHi Car Services Limited has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Herc Holdings and eHi Car Services Limited, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|eHi Car Services Limited||0||0||0||0||N/A|
Herc Holdings presently has a consensus price target of $43.83, suggesting a potential upside of 19.34%. Given Herc Holdings’ higher possible upside, equities research analysts clearly believe Herc Holdings is more favorable than eHi Car Services Limited.
eHi Car Services Limited beats Herc Holdings on 7 of the 12 factors compared between the two stocks.
Herc Holdings Company Profile
Herc Holdings Inc. is an equipment rental supplier. The Company operates approximately 280 branches, of which approximately 270 are in the United States and Canada. It supplies equipment to the markets, including commercial and residential construction, industrial and manufacturing, refineries and petrochemicals, civil infrastructure, automotive, government and municipalities, energy, remediation, emergency response, facilities, entertainment and agriculture. It operates through its Herc Rentals Inc. subsidiary. Its equipment rental business is supported by ProSolutions, its industry-specific solutions-based services, and its ProContractor Tools line. The ProContractor equipment line includes a range of tools, such as air compressors and tool, climate control, plumbing, care and surface preparation. The ProSolutions Industrial Services is a global operation providing an industrial line of products and services, including mobile tool rooms and asset management systems.
eHi Car Services Limited Company Profile
eHi Car Services Limited, formerly Prudent Choice International Limited, is a holding company. The Company is engaged in car rentals and car services. The Company provides self-drive car rental services to both individual customers, as well as corporate and institutional clients to meet travel, leisure, business and ground transportation needs. The Company operates its car rentals business primarily through its subsidiaries, including Shanghai eHi Car Rental Co., Ltd. (eHi Rental), eHi Auto Services (Jiangsu) Co., Ltd. (eHi Jiangsu), and their subsidiaries and branches. For its car services business, the Company provides vehicles and chauffeur services through different subsidiaries. The Company provides chauffeur services through its subsidiary, Shanghai Smart Brand Auto Driving Services Co., Ltd. (Shanghai Smart Brand), and its subsidiaries and branches. The Company has a limited operating history.
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