EquipmentShare.com Inc. (EQPT) vs McGrath RentCorp (MGRC)

EquipmentShare.com Inc. and McGrath RentCorp are both Rental & Leasing Services companies. EquipmentShare.com Inc. is the larger, with a market value of $3.7B against $2.8B — 1.3× the size. EquipmentShare.com Inc. trades at the lower P/E: 15.1× against 18.2×. McGrath RentCorp has the higher net margin (16.4% vs 1.03%) and the lower return on invested capital (12.0% vs 23.5%). Across the 18 metrics below, EquipmentShare.com Inc. leads on 9 and McGrath RentCorp on 9.

Valuation

Metric EQPT MGRC Rental & Leasing Services median
P/E 15.14 18.17 18.17
P/S 0.67 2.97 0.92
P/B 2.84 2.22 2.15
Price to free cash flow n/m 35.04 7.80
EV/EBITDA 3.33 7.93 7.72
EV/Sales 1.32 2.96 2.47
Earnings yield 6.61% 5.50% 1.00%
Free cash flow yield (49.41%) 2.85% 1.43%

Profitability

Metric EQPT MGRC Rental & Leasing Services median
Gross margin 49.70% 48.52% 49.40%
Operating margin 33.57% 25.47% 8.49%
Net margin 1.03% 16.38% 1.01%
Free cash flow margin (32.95%) 8.46% 1.87%
Return on equity 0.00% 12.69% 12.13%
Return on assets 1.49% 6.33% 0.24%
Return on invested capital 23.50% 11.96% 2.80%

Growth

Metric EQPT MGRC Rental & Leasing Services median
Revenue growth (TTM) — (0.92%) 3.21%
EPS growth (last fiscal year) (74.36%) (32.66%) (8.44%)
Revenue growth, 5-year CAGR — 10.52% 12.97%
Net income growth, 5-year CAGR — 8.92% 0.00%

Health

Metric EQPT MGRC Rental & Leasing Services median
Debt to equity 3.16 0.00 1.48
Current ratio 2.42 0.26 1.36
Net debt to EBITDA 4.59 0.00 4.32

Dividend

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

Size

Metric EQPT MGRC Rental & Leasing Services median
Market cap 3.66b 2.76b 2.43b

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