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 $190.1M — 11.0× the size. Alta Equipment Group Inc. has negative trailing earnings, so its P/E is not meaningful; Custom Truck One Source, Inc. trades at 105×. 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 105.00 19.17
P/S 0.11 1.06 0.99
P/B n/m 2.63 2.23
Price to free cash flow 3.00 n/m 8.31
EV/EBITDA 6.00 8.64 7.84
EV/Sales 0.50 1.87 2.53
Earnings yield (41.32%) 0.95% 0.95%
Free cash flow yield 33.30% (2.42%) 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%) —
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 1.94% — 1.59%
Payout ratio 1.52 0.00 0.00

Size

Metric ALTG CTOS Rental & Leasing Services median
Market cap 190.12m 2.10b 2.42b

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