Alta Equipment Group Inc. (ALTG) vs McGrath RentCorp (MGRC)

Alta Equipment Group Inc. and McGrath RentCorp are both Rental & Leasing Services companies. McGrath RentCorp is the larger, with a market value of $2.8B against $197.0M — 14.0× the size. Alta Equipment Group Inc. has negative trailing earnings, so its P/E is not meaningful; McGrath RentCorp trades at 18.2×. McGrath RentCorp grew revenue faster over the last twelve months: −0.92% against −1.80%. McGrath RentCorp has the higher net margin (16.4% vs −4.58%) and the higher return on invested capital (12.0% vs 1.51%). Only McGrath RentCorp pays a dividend (2.17%). Across the 21 metrics below, McGrath RentCorp leads on 12 and Alta Equipment Group Inc. on 9.

Valuation

Metric ALTG MGRC Rental & Leasing Services median
P/E n/m 18.17 18.17
P/S 0.11 2.97 0.92
P/B n/m 2.22 2.15
Price to free cash flow 2.87 35.04 7.80
EV/EBITDA 5.94 7.93 7.72
EV/Sales 0.50 2.96 2.47
Earnings yield (43.27%) 5.50% 1.00%
Free cash flow yield 34.87% 2.85% 1.43%

Profitability

Metric ALTG MGRC Rental & Leasing Services median
Gross margin 25.90% 48.52% 49.40%
Operating margin 0.90% 25.47% 8.49%
Net margin (4.58%) 16.38% 1.01%
Free cash flow margin 3.74% 8.46% 1.87%
Return on equity (2,163.64%) 12.69% 12.13%
Return on assets (6.04%) 6.33% 0.24%
Return on invested capital 1.51% 11.96% 2.80%

Growth

Metric ALTG MGRC Rental & Leasing Services median
Revenue growth (TTM) (1.80%) (0.92%) 3.21%
EPS growth (last fiscal year) (30.10%) (32.66%) (8.44%)
Revenue growth, 5-year CAGR 16.01% 10.52% 12.97%
Net income growth, 5-year CAGR 0.00% 8.92% 0.00%

Health

Metric ALTG MGRC Rental & Leasing Services median
Debt to equity (20.18) 0.00 1.48
Current ratio 1.38 0.26 1.36
Net debt to EBITDA 4.42 0.00 4.32

Dividend

Metric ALTG MGRC Rental & Leasing Services median
Dividend yield 0.00% 2.17% 1.56%
Payout ratio — 0.40 0.22

Size

Metric ALTG MGRC Rental & Leasing Services median
Market cap 196.98m 2.76b 2.43b

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