Reviewing Herc (NYSE:HRI) & BlueLinx (NYSE:BXC)

Herc (NYSE:HRI) and BlueLinx (NYSE:BXC) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares Herc and BlueLinx’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%
BlueLinx	-0.06%	0.13%	0.05%

Analyst Ratings

This is a summary of recent ratings and price targets for Herc and BlueLinx, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Herc	0	2	6	1	2.89
BlueLinx	1	3	1	0	2.00

Herc presently has a consensus price target of $174.86, suggesting a potential upside of 36.17%. BlueLinx has a consensus price target of $83.50, suggesting a potential upside of 8.72%. Given Herc’s stronger consensus rating and higher probable upside, research analysts plainly believe Herc is more favorable than BlueLinx.

Risk & Volatility

Herc has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500. Comparatively, BlueLinx has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

93.1% of Herc shares are held by institutional investors. Comparatively, 90.8% of BlueLinx shares are held by institutional investors. 2.2% of Herc shares are held by company insiders. Comparatively, 3.6% of BlueLinx shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Herc and BlueLinx”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Herc	$4.86 billion	0.88	$1.00 million	$1.47	87.36
BlueLinx	$2.95 billion	0.20	$220,000.00	($0.25)	-307.22

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 14 of the 15 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 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.