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

Volatility and Risk

United Rentals has a beta of 2.61, suggesting that its stock price is 161% more volatile than the S&P 500. Comparatively, FlexShopper has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for United Rentals and FlexShopper, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Rentals 2 1 10 0 2.62
FlexShopper 0 0 0 0 N/A

United Rentals presently has a consensus price target of $168.33, suggesting a potential upside of 42.05%. Given United Rentals’ higher probable upside, equities research analysts plainly believe United Rentals is more favorable than FlexShopper.

Insider and Institutional Ownership

88.0% of United Rentals shares are owned by institutional investors. Comparatively, 9.8% of FlexShopper shares are owned by institutional investors. 1.0% of United Rentals shares are owned by insiders. Comparatively, 15.1% of FlexShopper shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares United Rentals and FlexShopper’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Rentals $6.64 billion 1.45 $1.35 billion $10.59 11.19
FlexShopper $67.05 million 0.19 -$8.33 million N/A N/A

United Rentals has higher revenue and earnings than FlexShopper.

Profitability

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

Net Margins Return on Equity Return on Assets
United Rentals 21.96% 39.46% 8.17%
FlexShopper -14.34% N/A -35.47%

Summary

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

United Rentals Company Profile

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench, Power, and Pump. The General Rentals segment engages in the rental of general construction and industrial equipment, such as 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. This segment serves construction and industrial companies, manufacturers, utilities, municipalities, and homeowners. The Trench, Power, and Pump segment is involved in the rental of specialty construction products, including trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and HVAC equipment consisting of portable diesel generators, electrical distribution equipment, and temperature control equipment; and pumps primarily used by energy and petrochemical customers. It serves construction companies involved in infrastructure projects, municipalities, and industrial companies. The company also sells new equipment, such as aerial lifts, reach forklifts, telehandlers, compressors, and generators; contractor supplies, including construction consumables, tools, small equipment, and safety supplies; and parts for equipment that are owned by the company's 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 1, 2018, the company operated 997 rental locations in the United States and Canada. United Rentals, Inc. was founded in 1997 and is headquartered in Stamford, Connecticut.

FlexShopper Company Profile

FlexShopper, Inc., through its wholly owned subsidiary, FlexShopper, LLC, provides various types of durable goods to consumers on a lease-to-own basis (LTO) to consumers of third party retailers and e-tailers. It offers products through FlexShopper.com, an LTO e-commerce marketplace; e-commerce sites and in-store terminals by utilizing FlexShopper's LTO payment method; and facilitation of LTO transactions with retailers. The company was formerly known as Anchor Funding Services, Inc. and changed its name to FlexShopper, Inc. in October 2013. FlexShopper, Inc. was founded in 2003 and is based in Boca Raton, Florida.

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