Equipment rental demand remains supported by large, multiyear projects across infrastructure, data centers, power, manufacturing and other nonresidential markets. United Rentals, Inc. (URI Quick QuoteURI - Free Report) and Herc Holdings Inc. (HRI Quick QuoteHRI - Free Report) are two major rental providers positioned to capitalize on this activity, although their current operating profiles differ considerably. While United Rentals operates with industry-leading scale and a diversified one-stop-shop model, Herc has significantly expanded its operating platform through the H&E Equipment Services acquisition.

Both companies are seeing stronger demand from large projects while increasing fleet investment to capture growth. United Rentals is benefiting from robust nonresidential and infrastructure activity, strength in power markets and continued data-center demand. Herc, meanwhile, is leveraging its expanded branch network and fleet capacity to pursue a larger share of mega projects, particularly across energy, data centers and manufacturing. Both companies raised their 2026 outlooks in response to stronger-than-expected demand. 

Let’s closely compare the fundamentals of the two stocks to determine which one has more upside.

The Case for United Rentals Stock

United Rentals enters the comparison with strong operating momentum. Second-quarter 2026 total revenues increased 12% year over year to $4.4 billion, while rental revenues advanced nearly 13% to $3.8 billion. Fleet productivity improved 3.4%, helping support a 9% increase in owned-equipment rental revenues. Adjusted EPS rose 22% year over year to $12.76.

Demand remains broad-based. Construction activity posted solid growth, led by nonresidential and infrastructure markets, while power delivered double-digit growth and metals and minerals also expanded. United Rentals is seeing project activity across hospitals, airports and LNG terminals, with data centers continuing to provide another growth avenue. Specialty is particularly strong, with second-quarter rental revenues rising 24.8% year over year to $1.43 billion, compared with 6.6% growth in General Rentals.

Strong demand prompted United Rentals to raise its 2026 outlook. Total revenues are now expected between $17.5 billion and $17.8 billion, while adjusted EBITDA is projected between $7.98 billion and $8.13 billion. Gross rental capital expenditures were also increased to $4.85-$5.25 billion as historically high utilization requires additional fleet to support customer demand. Despite the heavier investment, free cash flow guidance remains $2.15-$2.45 billion.

The balance sheet provides additional flexibility. Net leverage stood at 1.8 times at the end of June, within management’s target range, while liquidity was nearly $3 billion. United Rentals had returned $998 million to its shareholders during the first half and continues to target $1.5 billion of share repurchases for 2026.

However, United Rentals remains exposed to the cyclical construction and industrial markets. Higher fleet investment also increases the importance of maintaining utilization and rental rates, while inflation, fuel and delivery costs could pressure profitability if they cannot be fully recovered through pricing.

The Case for Herc Stock

Herc is entering a new phase following the integration of H&E Equipment Services. Management completed the integration during the first quarter of 2026 and shifted its focus toward improving utilization, capturing synergies and driving growth across the larger platform. Second-quarter 2026 pro forma equipment rental revenues returned to growth earlier than expected, increasing 2% despite a smaller average fleet.

The H&E acquisition has materially expanded Herc’s fleet capacity, branch density and ability to participate in large projects. National accounts are leading growth, fueled by robust mega-project activity, while specialty revenues increased at a double-digit rate. The company is directing additional fleet investments toward specialty equipment and cross-selling opportunities across its larger customer base.

Mega projects represent an especially important opportunity. Herc said its pipeline and on-rent activity across large multiyear projects are running ahead of prior assumptions. Demand is strongest across energy, data centers and manufacturing, and the expanded H&E platform gives Herc greater capacity to serve major contractors. Management consequently increased its targeted share of the U.S. mega-project rental opportunity to 20% from 15%.

Reflecting stronger national-account demand, Herc raised its 2026 outlook. At the midpoint, equipment rental revenues are expected to reach roughly $4.43 billion and adjusted EBITDA about $2.09 billion. Management expects pro forma rental revenue growth of nearly 5% on roughly flat average fleet investment, signaling improving fleet efficiency.

Stock Performance & Valuation

As shown in the chart below, in the past six months, URI’s shares have outperformed HRI, the broader Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

From a valuation standpoint, URI is currently trading at a premium to HRI on a forward 12-month price-to-earnings (P/E) ratio basis.

Image Source: Zacks Investment Research

Comparing EPS Estimate Trends: URI vs. HRI

URI’s earnings estimates for 2026 and 2027 have moved upward over the past 30 days to $48.70 and $56.04 per share, respectively. The revised estimates imply year-over-year earnings growth of 15.8% and 15.1%, respectively.

URI's EPS Trend

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for HRI’s 2026 earnings has increased marginally over the past 30 days to $6.97 and $10.74 per share, respectively. The estimates imply year-over-year earnings growth of 5.3% and 8.1% in 2026 and 2027, respectively.

HRI's EPS Trend

Image Source: Zacks Investment Research

Which Rental Stock Is the Better Buy?

Both United Rentals and Herc are positioned to benefit from sustained equipment-rental demand tied to infrastructure, manufacturing, energy, data centers and other large-scale projects. United Rentals stands out for its industry-leading scale, strong specialty growth, high margins, robust free cash flow and lower leverage. The company also raised its 2026 revenue, EBITDA and capital-spending outlook as large-project demand remained stronger than initially expected. However, URI currently carries a Zacks Rank #3 (Hold), suggesting limited near-term earnings estimate momentum.

Herc, meanwhile, is gaining traction after completing the H&E integration. The acquisition has expanded its fleet, branch density and ability to serve national accounts and mega projects. Improving fleet utilization, double-digit specialty growth and expected revenues and cost synergies support the growth outlook. Expanded scale also creates cross-selling opportunities across the combined customer base. 

From a Zacks Rank perspective, HRI currently holds the advantage with a Zacks Rank #1 (Strong Buy). Therefore, investors seeking stronger near-term earnings estimate momentum may find Herc more compelling, while United Rentals remains supported by superior balance-sheet strength and cash-generation capacity. You can see the complete list of today’s Zacks #1 Rank stocks here.