Herc (NYSE:HRI – Get Free Report) and Finning International (OTCMKTS:FINGF – Get Free Report) are both mid-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
Profitability
This table compares Herc and Finning International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Herc | 1.01% | 10.33% | 1.44% |
| Finning International | 4.93% | 20.17% | 7.06% |
Analyst Ratings
This is a summary of recent recommendations and price targets for Herc and Finning International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Herc | 0 | 4 | 5 | 0 | 2.56 |
| Finning International | 0 | 0 | 5 | 0 | 3.00 |
Valuation & Earnings
This table compares Herc and Finning International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Herc | $4.38 billion | 1.32 | $1.00 million | $1.47 | 117.98 |
| Finning International | $7.58 billion | 1.19 | $470.93 million | $2.34 | 29.65 |
Finning International has higher revenue and earnings than Herc. Finning International is trading at a lower price-to-earnings ratio than Herc, indicating that it is currently the more affordable of the two stocks.
Dividends
Herc pays an annual dividend of $2.80 per share and has a dividend yield of 1.6%. Finning International pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Herc pays out 190.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Finning International pays out 41.0% of its earnings in the form of a dividend. Herc has raised its dividend for 2 consecutive years. Herc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
93.1% of Herc shares are held by institutional investors. 2.2% of Herc shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Finning International beats Herc on 8 of the 15 factors compared between the two stocks.
About Herc
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.
About Finning International
Finning International Inc. sells, services, and rents heavy equipment, engines, and related products in Canada, Chile, Bolivia, the United Kingdom, Argentina, Ireland, and internationally. The company offers articulated trucks, asphalt pavers, backhoe loaders, cold planers, compactors, dozers, drills, electric rope shovels, excavators, hydraulic mining shovels, material handlers, motor graders, off-highway trucks, pipelayers, road reclaimers, skid steer and compact track loaders, track loaders, underground-hard rock, wheel loaders, and wheel tractor-scrapers, as well as mobile and stationary generator sets. It also provides blades, buckets – skid steer loaders, forks, hammers, augers, brooms, material handling, mulchers, grapples, couplers loaders, backhoes, buckets telehandlers, trenchers, stump grinders, multi-processors, buckets loaders, electric power controls, rakes, couplers excavators, bale grabs, cold planers, compactors, flail mowers, buckets mining shovels, pulverizers, nursery products, buckets compact wheels loaders, buckets backhoe rears, bale spears, tillers, shears, buckets backhoe fronts, tilt rotate systems, adapters, rippers, saws, snow products, and buckets excavators. In addition, it offers power systems for electric power generation, oil and gas, industrial, and marine power systems; and rents generators, power distribution products, and air compressors. Further, the company provides aftercare, fluid analysis, finning managed, financing, warranty, customer training solutions, as well as rebuilds, rentals, and repair services. It serves agriculture, construction, forestry, electric power generation, industrial and waste, industrial OEMs, marine, mining, oil and gas, paving, and quarrying industries. The company was formerly known as Finning Ltd. and changed its name to Finning International Inc. in April 1997. Finning International Inc. was incorporated in 1933 and is headquartered in Surrey, Canada.
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