Equipment rentals is a market segment that is somewhat fragmented in the U.S and isn't dominated by any one player, providing ample opportunity for growth via acquisition. These companies are also poised to benefit from president Trump's infrastructure expansion plans, and they are currently experiencing a rentals rally.
The largest equipment rental company is United Rentals, Inc. (NYSE:URI), with a Market Cap of $10.9 billion. In this article, I would like to compare URI to a similar, although much smaller equipment rental company, Herc Holdings (NYSE:HRI), a recent spin-off from Hertz Global Holdings, Inc. (NYSE:HTZ). The HRI spin-off was completed in June 2016 which makes comparing fundamentals a little difficult, but at the same time presents opportunity for profit.