Huron Consulting Group (HURN) & H&E Equipment Services (HEES) Critical Survey

Huron Consulting Group (NASDAQ: HURN) and H&E Equipment Services (NASDAQ:HEES) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.

Dividends

H&E Equipment Services pays an annual dividend of $1.10 per share and has a dividend yield of 3.0%. Huron Consulting Group does not pay a dividend. H&E Equipment Services pays out 107.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Huron Consulting Group has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, H&E Equipment Services has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Huron Consulting Group and H&E Equipment Services, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huron Consulting Group 0 2 3 0 2.60
H&E Equipment Services 0 0 3 0 3.00

Huron Consulting Group currently has a consensus price target of $48.00, indicating a potential upside of 18.67%. H&E Equipment Services has a consensus price target of $34.00, indicating a potential downside of 7.31%. Given Huron Consulting Group’s higher probable upside, research analysts clearly believe Huron Consulting Group is more favorable than H&E Equipment Services.

Profitability

This table compares Huron Consulting Group and H&E Equipment Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huron Consulting Group -17.09% 7.50% 3.83%
H&E Equipment Services 3.69% 38.83% 4.30%

Institutional and Insider Ownership

89.6% of Huron Consulting Group shares are owned by institutional investors. Comparatively, 75.5% of H&E Equipment Services shares are owned by institutional investors. 2.7% of Huron Consulting Group shares are owned by company insiders. Comparatively, 12.3% of H&E Equipment Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Huron Consulting Group and H&E Equipment Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huron Consulting Group $797.98 million 1.12 $37.61 million ($6.38) -6.34
H&E Equipment Services $978.14 million 1.34 $37.17 million $1.02 35.96

Huron Consulting Group has higher earnings, but lower revenue than H&E Equipment Services. Huron Consulting Group 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 Huron Consulting Group on 11 of the 15 factors compared between the two stocks.

About Huron Consulting Group

Huron Consulting Group Inc. is a global professional services firm. The Company offers solutions in operations, advisory services, technology and analytics for healthcare, higher education, life sciences and commercial sectors. The Company’s segments include Healthcare, Education and Life Sciences, and Business Advisory. Its Healthcare segment provides advisory services, from strategy setting through implementation, in the areas of organizational and resource alignment, clinical transformation, financial and operational performance, patient and caregiver engagement, and technology implementation and optimization. Its Education and Life Sciences segment provides management consulting and technology solutions to the higher education and academic medical centers, pharmaceutical and medical device, biotechnology and research industries. The Business Advisory segment’s primary service lines include Enterprise Solutions and Analytics, and Business Advisory.

About H&E Equipment Services

H&E Equipment Services, Inc. is an integrated equipment services company. The Company is focused on heavy construction and industrial equipment. As of December 31, 2016, the Company rented, sold and provided parts and services support for four core categories of specialized equipment: hi-lift or aerial work platform equipment; cranes; earthmoving equipment, and industrial lift trucks. The Company’s principal business activities include equipment rentals; new equipment sales; used equipment sales; parts sales, and repair and maintenance services. As of February 16, 2017, the Company had 78 facilities located throughout the West Coast, Intermountain, Southwest, Gulf Coast, Southeast and Mid-Atlantic regions of the United States. The Company rents its heavy construction and industrial equipment to its customers on a daily, weekly and monthly basis. The Company sells new heavy construction and industrial equipment. The Company is a distributor of Grove and Manitowoc crane equipment.

What are top analysts saying about Huron Consulting Group? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Huron Consulting Group and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit