Aggreko (OTCMKTS:ARGKF – Get Free Report) and Herc (NYSE:HRI – Get Free Report) are both mid-cap industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Valuation & Earnings
This table compares Aggreko and Herc”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aggreko | $1.75 billion | 1.74 | -$142.52 million | $0.28 | 42.54 |
| Herc | $4.38 billion | 1.15 | $1.00 million | $1.47 | 102.33 |
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Aggreko and Herc, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aggreko | 0 | 0 | 0 | 0 | 0.00 |
| Herc | 0 | 4 | 5 | 0 | 2.56 |
Herc has a consensus target price of $183.00, indicating a potential upside of 21.65%. Given Herc’s stronger consensus rating and higher probable upside, analysts plainly believe Herc is more favorable than Aggreko.
Profitability
This table compares Aggreko and Herc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aggreko | N/A | N/A | N/A |
| Herc | 1.01% | 10.33% | 1.44% |
Volatility & Risk
Aggreko has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Herc has a beta of 1.86, suggesting that its share price is 86% more volatile than the S&P 500.
Institutional and Insider Ownership
93.1% of Herc shares are owned by institutional investors. 2.2% of Herc shares are owned by company 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.
Summary
Herc beats Aggreko on 13 of the 14 factors compared between the two stocks.
About Aggreko
Aggreko Plc engages in the provision of mobile modular power, temperature control and energy services. It operates through the following segments: Rental Solutions, Power Solutions and Power Solutions Utility. The Rental Solutions segment refers to the transactional business serving a range of sectors in developed markets by providing power, heating, and cooling to a number of customer types who need it quickly and typically for a short period of time. The Power Solutions segment operates in emerging markets which serve both industrial and utility customers with power requirements. The Power Solutions Utility segment delivers longer-term projects providing power to national utility customers. The company was founded in 1962 and is headquartered in Glasgow, the United Kingdom.
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.
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