United Rentals (NYSE:URI – Get Free Report) and Rush Enterprises (NASDAQ:RUSHA – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.
Insider & Institutional Ownership
96.3% of United Rentals shares are owned by institutional investors. Comparatively, 84.4% of Rush Enterprises shares are owned by institutional investors. 0.5% of United Rentals shares are owned by insiders. Comparatively, 12.7% of Rush Enterprises shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and price targets for United Rentals and Rush Enterprises, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Rentals | 1 | 0 | 16 | 1 | 2.94 |
| Rush Enterprises | 1 | 1 | 3 | 0 | 2.40 |
Profitability
This table compares United Rentals and Rush Enterprises’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Rentals | 15.67% | 31.72% | 9.47% |
| Rush Enterprises | 3.67% | 11.65% | 5.84% |
Valuation & Earnings
This table compares United Rentals and Rush Enterprises”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Rentals | $16.10 billion | 3.90 | $2.49 billion | $41.64 | 24.25 |
| Rush Enterprises | $7.24 billion | 0.82 | $263.78 million | $2.21 | 23.05 |
United Rentals has higher revenue and earnings than Rush Enterprises. Rush Enterprises is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
United Rentals has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Rush Enterprises has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Dividends
United Rentals pays an annual dividend of $7.88 per share and has a dividend yield of 0.8%. Rush Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.1%. United Rentals pays out 18.9% of its earnings in the form of a dividend. Rush Enterprises pays out 25.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Rentals has increased its dividend for 3 consecutive years and Rush Enterprises has increased its dividend for 6 consecutive years. Rush Enterprises is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
United Rentals beats Rush Enterprises on 15 of the 18 factors compared between the two stocks.
About United Rentals
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents specialty construction products, including trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. It also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. The company sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. The company operates in the United States, Canada, Europe, Australia, and New Zealand. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.
About Rush Enterprises
Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, and Dennis Eagle. The company also offers new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance products. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services, body, chassis upfitting, and component installation services; and vehicle telematics products, as well as sells new and used trailers, and tires for use on commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner-operators. It operates a network of centers located in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Ontario. Rush Enterprises, Inc. was incorporated in 1965 and is headquartered in New Braunfels, Texas.
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