Analyzing Alta Equipment Group (NYSE:ALTG) and Herc (NYSE:HRI)

Herc (NYSE:HRI) and Alta Equipment Group (NYSE:ALTG) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations for Herc and Alta Equipment Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Herc	0	4	5	0	2.56
Alta Equipment Group	1	2	1	0	2.00

Herc presently has a consensus target price of $183.00, indicating a potential upside of 29.90%. Alta Equipment Group has a consensus target price of $8.75, indicating a potential upside of 52.97%. Given Alta Equipment Group’s higher possible upside, analysts clearly believe Alta Equipment Group is more favorable than Herc.

Institutional & Insider Ownership

93.1% of Herc shares are held by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are held by institutional investors. 2.2% of Herc shares are held by insiders. Comparatively, 20.5% of Alta Equipment Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Herc has a beta of 1.86, indicating that its share price is 86% more volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares Herc and Alta Equipment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Herc	1.01%	10.33%	1.44%
Alta Equipment Group	-4.42%	-3,253.61%	-5.92%

Valuation & Earnings

This table compares Herc and Alta Equipment Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Herc	$4.86 billion	0.97	$1.00 million	$1.47	95.84
Alta Equipment Group	$1.84 billion	0.10	-$80.30 million	($2.57)	-2.23

Herc has higher revenue and earnings than Alta Equipment Group. Alta Equipment Group 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 Alta Equipment Group on 12 of the 14 factors compared between the two stocks.

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.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.