United Rentals (NYSE:URI – Get Free Report) and American Biltrite (OTCMKTS:ABLT – Get Free Report) are both construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Profitability
This table compares United Rentals and American Biltrite’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| United Rentals | 15.32% | 30.56% | 9.23% |
| American Biltrite | -4.16% | -34.23% | -6.13% |
Institutional and Insider Ownership
96.3% of United Rentals shares are owned by institutional investors. 0.5% of United Rentals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| United Rentals | 1 | 3 | 13 | 0 | 2.71 |
| American Biltrite | 0 | 0 | 0 | 0 | 0.00 |
United Rentals currently has a consensus price target of $986.35, suggesting a potential upside of 3.59%. Given United Rentals’ stronger consensus rating and higher probable upside, research analysts plainly believe United Rentals is more favorable than American Biltrite.
Valuation & Earnings
This table compares United Rentals and American Biltrite”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| United Rentals | $16.10 billion | 3.71 | $2.49 billion | $39.20 | 24.29 |
| American Biltrite | $188.74 million | 0.01 | -$2.64 million | ($229.80) | -0.31 |
United Rentals has higher revenue and earnings than American Biltrite. American Biltrite is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
United Rentals has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, American Biltrite has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500.
Summary
United Rentals beats American Biltrite on 14 of the 14 factors compared between the two stocks.
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.
About American Biltrite
American Biltrite Inc., together with its subsidiaries, provides tape, jewelry, flooring, and rubber products worldwide. The company produces and offers pressure sensitive tapes, films, and protective sheeting under the American Biltrite and Ideal brands, which are used in various markets, such as automotive and transportation; construction; shoe/footwear; graphic arts, print, and signage; and various other industrial and consumer applications. It also manufactures and distributes commercial flooring primarily for healthcare, educational, and institutional sectors; and performance sheet rubber in North America, as well as designs and supplies fashion jewelry to department stores under the brands of Guess, T Tahari, Robert Rose, Berry, and Jessica McClintock. The company sells its tape products through sales organizations, distributors, and select manufacturers’ representatives. American Biltrite Inc. was founded in 1908 and is based in Wellesley Hills, Massachusetts.
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