Custom Truck One Source, Inc. (CTOS) vs WillScot Holdings Corporation (WSC)

Custom Truck One Source, Inc. and WillScot Holdings Corporation are both Rental & Leasing Services companies. WillScot Holdings Corporation is the larger, with a market value of $3.2B against $2.1B — 1.5× the size. WillScot Holdings Corporation 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 −2.51%. Custom Truck One Source, Inc. has the higher net margin (1.05% vs −3.00%) and the higher return on invested capital (4.12% vs 2.13%). Across the 19 metrics below, Custom Truck One Source, Inc. leads on 16 and WillScot Holdings Corporation on 3.

Valuation

Metric CTOS WSC Rental & Leasing Services median
P/E 105.00 n/m 19.17
P/S 1.06 1.43 0.99
P/B 2.63 3.61 2.23
Price to free cash flow n/m 8.87 8.31
EV/EBITDA 8.64 11.94 7.84
EV/Sales 1.87 2.95 2.53
Earnings yield 0.95% (2.04%) 0.95%
Free cash flow yield (2.42%) 11.28% 1.43%

Profitability

Metric CTOS WSC Rental & Leasing Services median
Gross margin 22.15% 64.16% 49.40%
Operating margin 7.99% 6.51% 8.49%
Net margin 1.05% (3.00%) 1.01%
Free cash flow margin (2.55%) 16.18% 1.87%
Return on equity 2.67% (7.08%) 12.13%
Return on assets 0.60% (1.15%) 0.24%
Return on invested capital 4.12% 2.13% 2.80%

Growth

Metric CTOS WSC Rental & Leasing Services median
Revenue growth (TTM) 7.03% (2.51%) 3.21%
EPS growth (last fiscal year) (16.67%) (293.33%) —
Revenue growth, 5-year CAGR 45.05% 12.38% 12.97%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CTOS WSC Rental & Leasing Services median
Debt to equity 2.03 3.84 1.48
Current ratio 1.34 0.81 1.36
Net debt to EBITDA 4.17 5.73 4.32

Dividend

Metric CTOS WSC Rental & Leasing Services median
Dividend yield — — 1.59%
Payout ratio 0.00 0.00 0.00

Size

Metric CTOS WSC Rental & Leasing Services median
Market cap 2.10b 3.22b 2.42b

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