United Rentals (NYSE: URI) is one of 98 publicly-traded companies in the “Business Support Services” industry, but how does it compare to its competitors? We will compare United Rentals to similar companies based on the strength of its dividends, risk, analyst recommendations, earnings, profitability, valuation and institutional ownership.

Risk and Volatility

United Rentals has a beta of 2.42, suggesting that its share price is 142% more volatile than the S&P 500. Comparatively, United Rentals’ competitors have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
United Rentals 9.86% 46.01% 6.42%
United Rentals Competitors -129.10% -181.16% -5.94%

Valuation and Earnings

This table compares United Rentals and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
United Rentals $5.98 billion $1.75 billion 18.89
United Rentals Competitors $1.11 billion $178.18 million 21.40

United Rentals has higher revenue and earnings than its competitors. United Rentals is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for United Rentals and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Rentals 1 4 11 0 2.63
United Rentals Competitors 739 2096 2684 84 2.38

United Rentals currently has a consensus target price of $126.92, indicating a potential downside of 2.46%. As a group, “Business Support Services” companies have a potential downside of 1.53%. Given United Rentals’ competitors higher possible upside, analysts plainly believe United Rentals has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

93.7% of United Rentals shares are owned by institutional investors. Comparatively, 62.9% of shares of all “Business Support Services” companies are owned by institutional investors. 1.2% of United Rentals shares are owned by company insiders. Comparatively, 11.8% of shares of all “Business Support Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

United Rentals beats its competitors on 9 of the 13 factors compared.

About United Rentals

United Rentals, Inc. is a holding company. The Company is an equipment rental company, which operates throughout the United States and Canada. It operates through two segments: general rentals, and trench, power and pump. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities. The trench, power and pump segment includes the rental of specialty construction products and related services. Its general rentals segment includes the rental of general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts and material handling equipment; aerial work platforms, such as boom lifts and scissor lifts, and general tools and light equipment, such as pressure washers, water pumps and power tools. As of January 1, 2017, it operated 887 rental locations. The Company conducts its operations through its subsidiary, United Rentals (North America), Inc. (URNA) and subsidiaries of URNA.

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