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 71.6×. Custom Truck One Source, Inc. grew revenue faster over the last twelve months: 5.78% against 0.44%. Custom Truck One Source, Inc. has the higher net margin (1.44% vs −2.60%) and the higher return on invested capital (4.27% vs 2.23%). Across the 20 metrics below, Custom Truck One Source, Inc. leads on 16 and WillScot Holdings Corporation on 4.

Valuation

Metric CTOS WSC Rental & Leasing Services median
P/E 71.56 n/m 20.11
P/S 1.03 1.39 1.11
P/B 2.58 3.37 2.44
Price to free cash flow 267.17 8.57 11.04
EV/EBITDA 8.39 11.77 8.70
EV/Sales 1.83 2.87 2.87
Earnings yield 1.40% (1.85%) 3.40%
Free cash flow yield 0.37% 11.67% 0.63%

Profitability

Metric CTOS WSC Rental & Leasing Services median
Gross margin 22.62% 63.84% 48.46%
Operating margin 8.21% 6.73% 8.37%
Net margin 1.44% (2.60%) 1.97%
Free cash flow margin 0.39% 30.51% 2.91%
Return on equity 3.67% (6.01%) 12.31%
Return on assets 0.83% (1.01%) 0.88%
Return on invested capital 4.27% 2.23% 2.86%

Growth

Metric CTOS WSC Rental & Leasing Services median
Revenue growth (TTM) 5.78% 0.44% 4.47%
EPS growth (last fiscal year) (16.67%) (293.33%) 1.04%
Revenue growth, 5-year CAGR 45.05% 12.38% 11.45%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CTOS WSC Rental & Leasing Services median
Debt to equity 2.01 3.60 1.28
Current ratio 1.28 0.78 1.01
Net debt to EBITDA 4.17 5.73 4.19

Dividend

Metric CTOS WSC Rental & Leasing Services median
Dividend yield — 1.57% 1.38%
Payout ratio — — 0.24

Size

Metric CTOS WSC Rental & Leasing Services median
Market cap 2.11b 3.23b 3.37b

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