H&E Equipment Services (NASDAQ:HEES) and WillScot (WSC) Head to Head Review

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H&E Equipment Services (NASDAQ: HEES) and WillScot (NASDAQ:WSC) are both small-cap industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for H&E Equipment Services and WillScot, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
H&E Equipment Services 1 0 4 0 2.60
WillScot 0 0 3 0 3.00

H&E Equipment Services currently has a consensus target price of $36.60, indicating a potential downside of 3.35%. WillScot has a consensus target price of $15.33, indicating a potential upside of 0.88%. Given WillScot’s stronger consensus rating and higher probable upside, analysts clearly believe WillScot is more favorable than H&E Equipment Services.

Profitability

This table compares H&E Equipment Services and WillScot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
H&E Equipment Services 10.69% 41.36% 5.30%
WillScot N/A N/A N/A

Dividends

H&E Equipment Services pays an annual dividend of $1.10 per share and has a dividend yield of 2.9%. WillScot does not pay a dividend. H&E Equipment Services pays out 31.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

75.1% of H&E Equipment Services shares are owned by institutional investors. Comparatively, 39.8% of WillScot shares are owned by institutional investors. 11.7% of H&E Equipment Services shares are owned by insiders. Comparatively, 66.3% of WillScot shares are owned by 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.

Valuation & Earnings

This table compares H&E Equipment Services and WillScot’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
H&E Equipment Services $1.03 billion 1.31 $109.65 million $3.48 10.88
WillScot $445.94 million 2.88 -$147.70 million ($3.89) -3.91

H&E Equipment Services has higher revenue and earnings than WillScot. WillScot is trading at a lower price-to-earnings ratio than H&E Equipment Services, indicating that it is currently the more affordable of the two stocks.

Summary

H&E Equipment Services beats WillScot on 9 of the 14 factors compared between the two stocks.

H&E Equipment Services Company Profile

H&E Equipment Services, Inc. operates as an integrated equipment services company. The company rents, sells, and provides parts and support services for hi-lift or aerial work platform equipment, cranes, earthmoving equipment, and industrial lift trucks. It offers heavy construction and industrial equipment for rent on a daily, weekly, and monthly basis. As of December 31, 2017, the company's rental fleet consisted of 31,387 pieces of equipment. It also sells new and used equipment, as well as parts; and provides maintenance and repair services for the customers' owned equipment. In addition, the company offers ancillary equipment support activities, including transportation, hauling, parts shipping, and loss damage waivers. H&E Equipment Services, Inc. provides its services to industrial and commercial companies, construction contractors, manufacturers, public utilities, municipalities, and maintenance contractors, as well as for other industrial accounts. As of February 15, 2018, it had a network of 83 full-service facilities serving approximately 39,600 customers across 22 states in the West Coast, Intermountain, Southwest, Gulf Coast, Southeast, and Mid-Atlantic regions of the United States. H&E Equipment Services, Inc. was founded in 1961 and is headquartered in Baton Rouge, Louisiana.

WillScot Company Profile

WillScot Corporation, through its subsidiaries, provides various specialty rental services in the United States, Canada, and Mexico. It is involved in the leasing and sale of mobile offices, modular buildings, and storage products. The company offers various modular space units, including panelized and stackable offices, single-wide modular space units, section modulars and redi-plex complexes, classrooms, container offices, and other modular spaces; and portable storage units, such as shipping containers with swing doors. It also provides value-added products and services, such as steps, ramps, furniture packages, damage waivers, basic appliances, Internet connectivity devices, and other amenities rental services; and delivery, site-work, installation, disassembly, unhooking and removal, and other ancillary products and services. In addition, the company sells new and used units. It serves customers in the commercial, industrial, construction, infrastructure, education, energy, natural resources, government, logistics, furniture and facilities rental, commercial real estate, and healthcare sectors primarily under the Williams Scotsman and Acton names. The company's fleet comprises approximately 95,000 modular space and portable storage units. WillScot Corporation is headquartered in Baltimore, Maryland.

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