Financial Survey: Hertz Global (OTCMKTS:HTZZ) and FTAI Infrastructure (NASDAQ:FIP)

Hertz Global (OTCMKTS:HTZZ) and FTAI Infrastructure (NASDAQ:FIP) are both small-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hertz Global and FTAI Infrastructure, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hertz Global	0	0	0	0	0.00
FTAI Infrastructure	1	0	3	0	2.50

FTAI Infrastructure has a consensus target price of $9.94, suggesting a potential upside of 132.73%. Given FTAI Infrastructure’s stronger consensus rating and higher probable upside, analysts plainly believe FTAI Infrastructure is more favorable than Hertz Global.

Valuation and Earnings

This table compares Hertz Global and FTAI Infrastructure”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hertz Global	N/A	N/A	N/A	$3.75	0.61
FTAI Infrastructure	$502.52 million	1.00	-$107.17 million	($5.19)	-0.82

Hertz Global has higher earnings, but lower revenue than FTAI Infrastructure. FTAI Infrastructure is trading at a lower price-to-earnings ratio than Hertz Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hertz Global and FTAI Infrastructure’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hertz Global	N/A	N/A	N/A
FTAI Infrastructure	-74.10%	-147.01%	-8.68%

Insider and Institutional Ownership

41.7% of Hertz Global shares are held by institutional investors. Comparatively, 87.4% of FTAI Infrastructure shares are held by institutional investors. 2.6% of FTAI Infrastructure shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

FTAI Infrastructure beats Hertz Global on 6 of the 11 factors compared between the two stocks.

About Hertz Global

Hertz Global Holdings, Inc., together with its subsidiaries, provides airport and off airport vehicle rental and leasing services. It operates through three segments: U.S. RAC, International RAC, and All Other Operations. The company provides its vehicle rental services under the Hertz, Dollar, Thrifty, Firefly, and Flexicar brands from approximately 12,000 corporate and franchisee locations in North America, Europe, Latin America, Africa, Asia, Australia, the Caribbean, the Middle East, and New Zealand. It rents vehicles on an hourly, daily, weekend, weekly, and monthly or multi-month basis. In addition, the company offers vehicle and lease financing; acquisition and remarketing; license, title, and registration; vehicle maintenance consultation; fuel, accident, and toll management; telematics-based location, and driver performance and scorecard reporting; and fleet management services. As of December 31, 2020, it operated a rental fleet of approximately 515,700 vehicles in the United States and 131,500 vehicles in international operations. The company serves corporate and leisure customers. Hertz Global Holdings, Inc. was founded in 1918 and is headquartered in Estero, Florida.

About FTAI Infrastructure

FTAI Infrastructure Inc. focuses on acquiring, developing, and operating assets and businesses that represent infrastructure for customers in the transportation, energy, and industrial products industries in North America. The company operates through five segments: Railroad, Jefferson Terminal, Repauno, Power and Gas, and Sustainability and Energy Transition. It operates a multi-modal crude oil and refined products terminal, and other related assets. The company also has a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern, a multipurpose dock, a rail-to-ship transloading system, and multiple industrial development opportunities; and a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In addition, it operates six freight railroads and one switching facility. FTAI Infrastructure Inc. was incorporated in 2021 and is headquartered in New York, New York.