Capstone Therapeutics (NASDAQ:CAPS – Get Free Report) and United Rentals (NYSE:URI – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, profitability, dividends, risk and institutional ownership.
Risk and Volatility
Capstone Therapeutics has a beta of -1.5, indicating that its share price is 250% less volatile than the S&P 500. Comparatively, United Rentals has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.
Profitability
This table compares Capstone Therapeutics and United Rentals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Capstone Therapeutics | -36.51% | -144.43% | -40.48% |
| United Rentals | 15.67% | 31.72% | 9.47% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Capstone Therapeutics | 1 | 0 | 0 | 0 | 1.00 |
| United Rentals | 1 | 1 | 15 | 1 | 2.89 |
United Rentals has a consensus target price of $1,230.88, indicating a potential upside of 24.72%. Given United Rentals’ stronger consensus rating and higher possible upside, analysts clearly believe United Rentals is more favorable than Capstone Therapeutics.
Earnings and Valuation
This table compares Capstone Therapeutics and United Rentals”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Capstone Therapeutics | $48.11 million | 0.08 | -$21.23 million | ($3.35) | -0.05 |
| United Rentals | $16.83 billion | 3.65 | $2.49 billion | $41.64 | 23.70 |
United Rentals has higher revenue and earnings than Capstone Therapeutics. Capstone Therapeutics 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
2.5% of Capstone Therapeutics shares are held by institutional investors. Comparatively, 96.3% of United Rentals shares are held by institutional investors. 39.3% of Capstone Therapeutics shares are held by insiders. Comparatively, 0.5% of United Rentals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
United Rentals beats Capstone Therapeutics on 14 of the 15 factors compared between the two stocks.
About Capstone Therapeutics
Capstone Therapeutics Corp., a biotechnology company, develops novel peptides and other molecules for helping patients with under-served medical conditions in the United States. It develops Apo E mimetic peptide molecule AEM-28 and its analogs that have completed Phase Ia and Phase Ib/IIa clinical trials for lipoprotein metabolism. The company was formerly known as OrthoLogic Corp. and changed its name to Capstone Therapeutics Corp. in May 2010. Capstone Therapeutics Corp. was founded in 1987 and is headquartered in Tempe, Arizona.
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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