AeroCentury (NYSE:ACY) vs. United Rentals (NYSE:URI) Head to Head Contrast

AeroCentury (NYSE:ACY) and United Rentals (NYSE:URI) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, dividends, risk, profitability, institutional ownership, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and target prices for AeroCentury and United Rentals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AeroCentury 0 0 0 0 N/A
United Rentals 0 11 7 0 2.39

United Rentals has a consensus target price of $157.27, suggesting a potential downside of 18.49%. Given United Rentals’ higher probable upside, analysts clearly believe United Rentals is more favorable than AeroCentury.

Institutional & Insider Ownership

3.8% of AeroCentury shares are owned by institutional investors. Comparatively, 97.9% of United Rentals shares are owned by institutional investors. 22.6% of AeroCentury shares are owned by company insiders. Comparatively, 1.0% of United Rentals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

AeroCentury has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500. Comparatively, United Rentals has a beta of 2.38, indicating that its share price is 138% more volatile than the S&P 500.

Profitability

This table compares AeroCentury and United Rentals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AeroCentury -102.72% -154.52% -18.08%
United Rentals 12.37% 37.16% 7.43%

Earnings and Valuation

This table compares AeroCentury and United Rentals’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AeroCentury $25.61 million 0.13 -$16.66 million N/A N/A
United Rentals $9.35 billion 1.49 $1.17 billion $19.52 9.88

United Rentals has higher revenue and earnings than AeroCentury.

Summary

United Rentals beats AeroCentury on 10 of the 11 factors compared between the two stocks.

About AeroCentury

AeroCentury Corp., together with its subsidiaries, provides leasing and finance services to regional airlines worldwide. The company primarily engages in leasing its aircraft portfolio consisting of mid-life regional aircraft through operating and finance leases. It also sells aircraft from its operating lease portfolio to third parties, which include other leasing companies, financial services companies, and airlines. As of March 30, 2020, the company's aircraft portfolio consisted of eleven aircraft held for lease, six aircraft held under sales-type or direct finance leases, and seven aircraft held for sale. AeroCentury Corp. was founded in 1989 and is headquartered in Burlingame, California.

About United Rentals

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench, Power and Fluid Solutions. The General Rentals segment rents general construction and industrial equipment, including backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom lifts and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools. It serves construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The Trench, Power and Fluid Solutions segment rents specialty construction products that include trench safety equipment, which comprise trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; and power, as well as heating, ventilating, and air conditioning equipment, including portable diesel generators, electrical distribution equipment, and temperature control equipment. It is also involved in the rental of fluid solutions equipment primarily used for fluid containment, transfer, and treatment. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. The company 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. It sells its used equipment through its sales force, brokers, and Website, as well as at auctions and directly to manufacturers. As of January 23, 2019, the company operated a network of 1,186 rental locations in North America and 11 in Europe. United Rentals, Inc. was founded in 1997 and is headquartered in Stamford, Connecticut.

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