Contrasting Xometry (NASDAQ:XMTR) and United Rentals (NYSE:URI)

United Rentals (NYSE:URI) and Xometry (NASDAQ:XMTR) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for United Rentals and Xometry, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
United Rentals	1	1	15	1	2.89
Xometry	1	4	8	0	2.54

United Rentals currently has a consensus target price of $1,288.19, indicating a potential upside of 7.50%. Xometry has a consensus target price of $113.18, indicating a potential upside of 12.26%. Given Xometry’s higher probable upside, analysts clearly believe Xometry is more favorable than United Rentals.

Volatility & Risk

United Rentals has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500. Comparatively, Xometry has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
United Rentals	16.33%	33.47%	9.96%
Xometry	-3.82%	-2.88%	-1.29%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
United Rentals	$16.10 billion	4.61	$2.49 billion	$45.50	26.34
Xometry	$686.63 million	7.61	-$61.74 million	($0.60)	-168.03

United Rentals has higher revenue and earnings than Xometry. Xometry is trading at a lower price-to-earnings ratio than United Rentals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

96.3% of United Rentals shares are held by institutional investors. Comparatively, 97.3% of Xometry shares are held by institutional investors. 0.5% of United Rentals shares are held by insiders. Comparatively, 9.1% of Xometry shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

United Rentals beats Xometry on 11 of the 15 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 Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, Maryland.