BlueLinx (NYSE:BXC – Get Free Report) and Herc (NYSE:HRI – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.
Analyst Ratings
This is a breakdown of current ratings for BlueLinx and Herc, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BlueLinx | 1 | 3 | 1 | 0 | 2.00 |
| Herc | 0 | 2 | 6 | 1 | 2.89 |
BlueLinx presently has a consensus price target of $83.50, suggesting a potential upside of 10.73%. Herc has a consensus price target of $174.86, suggesting a potential upside of 32.74%. Given Herc’s stronger consensus rating and higher possible upside, analysts plainly believe Herc is more favorable than BlueLinx.
Risk & Volatility
BlueLinx has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Herc has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.
Profitability
This table compares BlueLinx and Herc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BlueLinx | -0.06% | 0.13% | 0.05% |
| Herc | 1.01% | 10.33% | 1.44% |
Institutional & Insider Ownership
90.8% of BlueLinx shares are held by institutional investors. Comparatively, 93.1% of Herc shares are held by institutional investors. 3.6% of BlueLinx shares are held by insiders. Comparatively, 2.2% of Herc shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares BlueLinx and Herc”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BlueLinx | $2.95 billion | 0.20 | $220,000.00 | ($0.25) | -301.63 |
| Herc | $4.38 billion | 1.01 | $1.00 million | $1.47 | 89.61 |
Herc has higher revenue and earnings than BlueLinx. BlueLinx is trading at a lower price-to-earnings ratio than Herc, indicating that it is currently the more affordable of the two stocks.
Summary
Herc beats BlueLinx on 13 of the 15 factors compared between the two stocks.
About BlueLinx
BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.
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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