Analyzing Hertz Global (OTCMKTS:HTZZ) and FTAI Infrastructure (NASDAQ:FIP)

FTAI Infrastructure (NASDAQ:FIP) and Hertz Global (OTCMKTS:HTZZ) are both small-cap industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, valuation, analyst recommendations, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FTAI Infrastructure	-68.58%	-147.01%	-7.66%
Hertz Global	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for FTAI Infrastructure and Hertz Global, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Infrastructure	1	0	3	0	2.50
Hertz Global	0	0	0	0	0.00

FTAI Infrastructure presently has a consensus price target of $9.94, suggesting a potential upside of 166.42%. Given FTAI Infrastructure’s stronger consensus rating and higher possible upside, research analysts clearly believe FTAI Infrastructure is more favorable than Hertz Global.

Valuation & Earnings

This table compares FTAI Infrastructure and Hertz Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Infrastructure	$502.52 million	0.88	-$107.17 million	($4.51)	-0.83
Hertz Global	N/A	N/A	N/A	$3.75	0.44

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

Insider and Institutional Ownership

87.4% of FTAI Infrastructure shares are held by institutional investors. Comparatively, 41.7% of Hertz Global shares are held by institutional investors. 2.4% of FTAI Infrastructure shares are held by company 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

FTAI Infrastructure beats Hertz Global on 6 of the 11 factors compared between the two stocks.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.

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.