Alta Equipment Group Inc. (ALTG) vs Willis Lease Finance Corporation (WLFC)

Alta Equipment Group Inc. and Willis Lease Finance Corporation are both Rental & Leasing Services companies. Willis Lease Finance Corporation is the larger, with a market value of $1.1B against $190.1M — 5.9× the size. Alta Equipment Group Inc. has negative trailing earnings, so its P/E is not meaningful; Willis Lease Finance Corporation trades at 13.0×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 17.3% against −1.80%. Willis Lease Finance Corporation has the higher net margin (11.2% vs −4.58%) and the higher return on invested capital (2.62% vs 1.51%). Across the 19 metrics below, Willis Lease Finance Corporation leads on 12 and Alta Equipment Group Inc. on 7.

Valuation

Metric ALTG WLFC Rental & Leasing Services median
P/E n/m 13.03 19.17
P/S 0.11 1.50 0.99
P/B n/m 1.62 2.23
Price to free cash flow 3.00 n/m 8.31
EV/EBITDA 6.00 8.70 7.84
EV/Sales 0.50 4.31 2.53
Earnings yield (41.32%) 7.68% 0.95%
Free cash flow yield 33.30% (8.24%) 1.43%

Profitability

Metric ALTG WLFC Rental & Leasing Services median
Gross margin 25.90% 85.43% 49.40%
Operating margin 0.90% 32.48% 8.49%
Net margin (4.58%) 11.24% 1.01%
Free cash flow margin 3.74% (11.63%) 1.87%
Return on equity (2,163.64%) 12.96% 12.13%
Return on assets (6.04%) 2.26% 0.24%
Return on invested capital 1.51% 2.62% 2.80%

Growth

Metric ALTG WLFC Rental & Leasing Services median
Revenue growth (TTM) (1.80%) 17.34% 3.21%
EPS growth (last fiscal year) (30.10%) 0.33% —
Revenue growth, 5-year CAGR 16.01% 20.39% 12.97%
Net income growth, 5-year CAGR 0.00% 75.97% 0.00%

Health

Metric ALTG WLFC Rental & Leasing Services median
Debt to equity (20.18) 3.27 1.48
Current ratio 1.38 1.63 1.36
Net debt to EBITDA 4.42 5.98 4.32

Dividend

Metric ALTG WLFC Rental & Leasing Services median
Dividend yield 1.94% — 1.59%
Payout ratio 1.52 0.00 0.00

Size

Metric ALTG WLFC Rental & Leasing Services median
Market cap 190.12m 1.12b 2.42b

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