UniFirst (NYSE: UNF) and United Rentals (NYSE:URI) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This is a breakdown of current recommendations and price targets for UniFirst and United Rentals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
UniFirst presently has a consensus price target of $171.00, suggesting a potential upside of 5.20%. United Rentals has a consensus price target of $180.73, suggesting a potential downside of 4.58%. Given UniFirst’s stronger consensus rating and higher possible upside, analysts clearly believe UniFirst is more favorable than United Rentals.
This table compares UniFirst and United Rentals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
UniFirst pays an annual dividend of $0.15 per share and has a dividend yield of 0.1%. United Rentals does not pay a dividend. UniFirst pays out 4.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares UniFirst and United Rentals’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UniFirst||$1.59 billion||2.07||$70.19 million||$3.72||43.70|
|United Rentals||$6.64 billion||2.41||$1.35 billion||$7.68||24.66|
United Rentals has higher revenue and earnings than UniFirst. United Rentals is trading at a lower price-to-earnings ratio than UniFirst, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
72.6% of UniFirst shares are owned by institutional investors. Comparatively, 89.1% of United Rentals shares are owned by institutional investors. 1.0% of UniFirst shares are owned by insiders. Comparatively, 1.2% of United Rentals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
UniFirst has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, United Rentals has a beta of 2.53, suggesting that its stock price is 153% more volatile than the S&P 500.
United Rentals beats UniFirst on 12 of the 16 factors compared between the two stocks.
UniFirst Company Profile
UniFirst Corporation is a provider of workplace uniforms and protective work wear clothing in the United States. The Company designs, manufactures, personalizes, rents, cleans, delivers, and sells a range of uniforms and protective clothing, including shirts, pants, jackets, coveralls, lab coats, smocks, aprons and specialized protective wear, such as flame resistant and high visibility garments. It operates in six segments: the US Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (MFG), Specialty Garments Rental and Cleaning (Specialty Garments), First Aid and Corporate. The Company also rents and sells industrial wiping products, floor mats, facility service products and other non-garment items, and provides restroom and cleaning supplies and first aid cabinet services, and other safety supplies. It also decontaminates and cleans work clothes, which has been exposed to radioactive materials and service special cleanroom protective wear and facilities.
United Rentals Company Profile
United Rentals, Inc. is a holding company. The Company is an equipment rental company, which operates throughout the United States and Canada. It operates through two segments: general rentals, and trench, power and pump. The general rentals segment includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities. The trench, power and pump segment includes the rental of specialty construction products and related services. Its general rentals segment includes the rental of general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts and material handling equipment; aerial work platforms, such as boom lifts and scissor lifts, and general tools and light equipment, such as pressure washers, water pumps and power tools. As of January 1, 2017, it operated 887 rental locations. The Company conducts its operations through its subsidiary, United Rentals (North America), Inc. (URNA) and subsidiaries of URNA.
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