Custom Truck One Source, Inc. (CTOS) vs McGrath RentCorp (MGRC)

Custom Truck One Source, Inc. and McGrath RentCorp are both Rental & Leasing Services companies. McGrath RentCorp is the larger, with a market value of $2.7B against $2.1B — 1.3× the size. McGrath RentCorp trades at the lower P/E: 18.2× against 105×. Custom Truck One Source, Inc. grew revenue faster over the last twelve months: 7.03% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs 1.05%) and the higher return on invested capital (12.0% vs 4.12%). Across the 21 metrics below, McGrath RentCorp leads on 15 and Custom Truck One Source, Inc. on 6.

Valuation

Metric CTOS MGRC Rental & Leasing Services median
P/E 105.00 18.20 19.17
P/S 1.06 2.97 0.99
P/B 2.63 2.23 2.23
Price to free cash flow n/m 35.10 8.31
EV/EBITDA 8.64 7.94 7.84
EV/Sales 1.87 2.97 2.53
Earnings yield 0.95% 5.49% 0.95%
Free cash flow yield (2.42%) 2.85% 1.43%

Profitability

Metric CTOS MGRC Rental & Leasing Services median
Gross margin 22.15% 48.52% 49.40%
Operating margin 7.99% 25.47% 8.49%
Net margin 1.05% 16.38% 1.01%
Free cash flow margin (2.55%) 8.46% 1.87%
Return on equity 2.67% 12.69% 12.13%
Return on assets 0.60% 6.33% 0.24%
Return on invested capital 4.12% 11.96% 2.80%

Growth

Metric CTOS MGRC Rental & Leasing Services median
Revenue growth (TTM) 7.03% (0.92%) 3.21%
EPS growth (last fiscal year) (16.67%) (32.66%) —
Revenue growth, 5-year CAGR 45.05% 10.52% 12.97%
Net income growth, 5-year CAGR 0.00% 8.92% 0.00%

Health

Metric CTOS MGRC Rental & Leasing Services median
Debt to equity 2.03 0.00 1.48
Current ratio 1.34 0.26 1.36
Net debt to EBITDA 4.17 0.00 4.32

Dividend

Metric CTOS MGRC Rental & Leasing Services median
Dividend yield — 1.43% 1.59%
Payout ratio 0.00 0.40 0.00

Size

Metric CTOS MGRC Rental & Leasing Services median
Market cap 2.10b 2.73b 2.42b

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