Exterran (NASDAQ: RCII) and Rent-A-Center (NASDAQ:RCII) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.
This table compares Exterran and Rent-A-Center’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Exterran has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500. Comparatively, Rent-A-Center has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500.
This is a summary of current ratings and target prices for Exterran and Rent-A-Center, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rent-A-Center has a consensus price target of $9.50, indicating a potential downside of 35.68%. Given Rent-A-Center’s higher probable upside, analysts clearly believe Rent-A-Center is more favorable than Exterran.
Earnings & Valuation
This table compares Exterran and Rent-A-Center’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Exterran||$1.22 billion||0.81||$33.88 million||($0.39)||-70.28|
|Rent-A-Center||$2.70 billion||0.29||$6.65 million||($0.54)||-27.35|
Exterran has higher earnings, but lower revenue than Rent-A-Center. Exterran is trading at a lower price-to-earnings ratio than Rent-A-Center, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
87.5% of Exterran shares are owned by institutional investors. 2.2% of Exterran shares are owned by company insiders. Comparatively, 0.9% of Rent-A-Center shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Exterran beats Rent-A-Center on 11 of the 14 factors compared between the two stocks.
Exterran Corporation engages in the compression, production, and processing of products and services for the oil and natural gas industry worldwide. The company operates through three segments: contract Operations, Aftermarket Services, and Product Sales. Its contract operation services include personnel, equipment, tools, materials, and supplies. The company also sells parts and components; and provides operation, maintenance, overhaul, upgrade, commissioning, and reconfiguration services, as well as integrated infrastructure solutions. In addition, it designs, engineers, manufactures, sells, and installs a range of oil and natural gas production and processing equipment, such as line heaters, oil and natural gas separators, glycol dehydration units, condensate stabilizers, dew point control plants, water treatment, mechanical refrigeration, and cryogenic plants and skid-mounted production packages for onshore and offshore production facilities; and custom-engineered and built-to-specification production and processing equipment, as well as skid-mounted natural gas compression equipment and pre-engineered compressor units. Exterran Corporation was founded in 2007 and is headquartered in Houston, Texas.
Rent-A-Center, Inc., together with its subsidiaries, leases household durable goods to customers on a rent-to-own basis. The company operates through four segments: Core U.S., Acceptance Now, Mexico, and Franchising. It offers durable products, such as consumer electronics; appliances; computers, including tablets; smartphones; and furniture, including accessories under rental purchase agreements. The company also provides merchandise on an installment sales basis; and offers the rent-to-own transaction to consumers who do not qualify for financing from the traditional retailer through kiosks within retailer's locations. It operates retail installment sales stores under the Get It Now and Home Choice names; and rent-to-own and franchised rent-to-own stores under the Rent-A-Centre, ColorTyme, and RimTyme names. As of December 31, 2017, the company owned and operated approximately 2,381 stores in the United States, Canada, and Puerto Rico, including 45 retail installment sales stores; 1,106 Acceptance Now staffed locations in 42 states and Puerto Rico; 125 Acceptance Now Direct locations; and 131 stores in Mexico, as well as franchised 225 rent-to-own stores in 31 states under the Rent-A-Center, ColorTyme, and RimTyme names. Rent-A-Center, Inc. was founded in 1986 and is headquartered in Plano, Texas.
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