Financial Survey: Grafton Group (OTCMKTS:GROUF) versus United Rentals (NYSE:URI)

United Rentals (NYSE:URI) and Grafton Group (OTCMKTS:GROUF) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.

Volatility and Risk

United Rentals has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Grafton Group has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Valuation & Earnings

This table compares United Rentals and Grafton Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Rentals	$15.99 billion	3.39	$2.58 billion	$38.88	21.92
Grafton Group	$2.92 billion	0.85	$155.92 million	N/A	N/A

United Rentals has higher revenue and earnings than Grafton Group.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Rentals	15.83%	31.30%	9.61%
Grafton Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for United Rentals and Grafton Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Rentals	1	5	12	2	2.75
Grafton Group	0	0	1	0	3.00

United Rentals presently has a consensus target price of $974.47, suggesting a potential upside of 14.32%. Given United Rentals’ higher probable upside, equities analysts plainly believe United Rentals is more favorable than Grafton Group.

Insider and Institutional Ownership

96.3% of United Rentals shares are owned by institutional investors. Comparatively, 8.2% of Grafton Group 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 stock is poised for long-term growth.

Summary

United Rentals beats Grafton Group on 12 of the 13 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 Grafton Group

Grafton Group plc engages in the distribution, retailing, and manufacturing businesses in Ireland, the Netherlands, Finland, and the United Kingdom. Its Distribution segment distributes building materials, paint, tools, ironmongery, fixings, and accessories, workwear and PPE, and spare parts; materials and plant for mechanical services, heating, plumbing, and air movement; and trade, DIY, and self-build markets with building materials, timber, doors and floors, plumbing and heating, bathrooms, and landscaping products under the Selco, Leyland SDM, Chadwicks, MacBlair, Isero, Polvo, Gunters en Meuser, TG Lynes, and IKH brands. The company’s Retailing segment retails home and garden products through stores, including DIY products, paints, lighting products, homestyle products, housewares, bathroom products, and kitchens, as well as gardening and Christmas products under the Woodie’s brand. Its Manufacturing segment manufactures dry mortars and wooden staircases; and drainage, ducting and roofline systems under the CPI Mortar, StairBox, and MFP brand names. Grafton Group plc was founded in 1902 and is based in Dublin, Ireland.