American Biltrite (OTCMKTS:ABLT – Get Free Report) and United Rentals (NYSE:URI – Get Free Report) are both construction companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, profitability and earnings.
Risk & Volatility
American Biltrite has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.
Valuation & Earnings
This table compares American Biltrite and United Rentals”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Biltrite | $188.74 million | 0.01 | -$2.64 million | ($229.80) | -0.31 |
| United Rentals | $16.10 billion | 3.71 | $2.49 billion | $39.20 | 24.29 |
United Rentals has higher revenue and earnings than American Biltrite. American Biltrite is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
96.3% of United Rentals shares are owned by institutional investors. 0.5% of United Rentals shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Profitability
This table compares American Biltrite and United Rentals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Biltrite | -4.16% | -34.23% | -6.13% |
| United Rentals | 15.32% | 30.56% | 9.23% |
Analyst Recommendations
This is a breakdown of current recommendations and price targets for American Biltrite and United Rentals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Biltrite | 0 | 0 | 0 | 0 | 0.00 |
| United Rentals | 1 | 3 | 13 | 0 | 2.71 |
United Rentals has a consensus target price of $986.35, suggesting a potential upside of 3.59%. Given United Rentals’ stronger consensus rating and higher possible upside, analysts plainly believe United Rentals is more favorable than American Biltrite.
Summary
United Rentals beats American Biltrite on 14 of the 14 factors compared between the two stocks.
About American Biltrite
American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.
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.
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