Alta Equipment Group Inc. (ALTG) vs Custom Truck One Source, Inc. (CTOS)

Alta Equipment Group Inc. and Custom Truck One Source, Inc. are both Rental & Leasing Services companies. Custom Truck One Source, Inc. is the larger, with a market value of $2.1B against $197.0M — 10.6× the size. Alta Equipment Group Inc. has negative trailing earnings, so its P/E is not meaningful; Custom Truck One Source, Inc. trades at 100×. Custom Truck One Source, Inc. grew revenue faster over the last twelve months: 7.03% against −1.80%. Custom Truck One Source, Inc. has the higher net margin (1.05% vs −4.58%) and the higher return on invested capital (4.12% vs 1.51%). Across the 18 metrics below, Custom Truck One Source, Inc. leads on 10 and Alta Equipment Group Inc. on 8.

Valuation

Metric ALTG CTOS Rental & Leasing Services median
P/E n/m 100.33 18.17
P/S 0.11 1.01 0.92
P/B n/m 2.52 2.15
Price to free cash flow 2.87 n/m 7.80
EV/EBITDA 5.94 8.42 7.72
EV/Sales 0.50 1.82 2.47
Earnings yield (43.27%) 1.00% 1.00%
Free cash flow yield 34.87% (2.53%) 1.43%

Profitability

Metric ALTG CTOS Rental & Leasing Services median
Gross margin 25.90% 22.15% 49.40%
Operating margin 0.90% 7.99% 8.49%
Net margin (4.58%) 1.05% 1.01%
Free cash flow margin 3.74% (2.55%) 1.87%
Return on equity (2,163.64%) 2.67% 12.13%
Return on assets (6.04%) 0.60% 0.24%
Return on invested capital 1.51% 4.12% 2.80%

Growth

Metric ALTG CTOS Rental & Leasing Services median
Revenue growth (TTM) (1.80%) 7.03% 3.21%
EPS growth (last fiscal year) (30.10%) (16.67%) (8.44%)
Revenue growth, 5-year CAGR 16.01% 45.05% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ALTG CTOS Rental & Leasing Services median
Debt to equity (20.18) 2.03 1.48
Current ratio 1.38 1.34 1.36
Net debt to EBITDA 4.42 4.17 4.32

Dividend

Metric ALTG CTOS Rental & Leasing Services median
Dividend yield 0.00% — 1.56%
Payout ratio — — 0.22

Size

Metric ALTG CTOS Rental & Leasing Services median
Market cap 196.98m 2.09b 2.43b

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