Analyzing Core & Main (NYSE:CNM) and Herc (NYSE:HRI)

Core & Main (NYSE:CNM) and Herc (NYSE:HRI) are both mid-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Profitability

This table compares Core & Main and Herc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.96%	25.98%	8.53%
Herc	1.01%	10.33%	1.44%

Volatility & Risk

Core & Main has a beta of 0.91, suggesting that its stock price is 9% less volatile than the S&P 500. Comparatively, Herc has a beta of 1.86, suggesting that its stock price is 86% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Core & Main and Herc, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	1	5	8	0	2.50
Herc	0	2	6	1	2.89

Core & Main presently has a consensus price target of $55.64, indicating a potential upside of 30.19%. Herc has a consensus price target of $184.43, indicating a potential upside of 28.75%. Given Core & Main’s higher probable upside, research analysts clearly believe Core & Main is more favorable than Herc.

Insider and Institutional Ownership

94.2% of Core & Main shares are held by institutional investors. Comparatively, 93.1% of Herc shares are held by institutional investors. 1.5% of Core & Main shares are held by company insiders. Comparatively, 2.2% of Herc shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Core & Main and Herc”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.65 billion	1.08	$441.00 million	$2.43	17.59
Herc	$4.38 billion	1.09	$1.00 million	$1.47	97.45

Core & Main has higher revenue and earnings than Herc. Core & Main is trading at a lower price-to-earnings ratio than Herc, indicating that it is currently the more affordable of the two stocks.

Summary

Core & Main beats Herc on 9 of the 15 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.

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.