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 $3.5B against $3.1B — 1.1× the size. EquipmentShare.com Inc. trades at the lower P/E: 15.4× against 19.6×. McGrath RentCorp has the higher net margin (16.8% 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 10 and McGrath RentCorp on 8.

Valuation

Metric EQPT MGRC Rental & Leasing Services median
P/E 15.37 19.64 20.11
P/S 0.68 3.28 1.11
P/B 2.88 2.44 2.44
Price to free cash flow n/m 112.64 11.04
EV/EBITDA 3.36 8.70 8.70
EV/Sales 1.33 3.28 2.87
Earnings yield 6.51% 5.09% 3.40%
Free cash flow yield (48.66%) 0.89% 0.63%

Profitability

Metric EQPT MGRC Rental & Leasing Services median
Gross margin 49.70% 48.81% 48.46%
Operating margin 33.57% 25.74% 8.37%
Net margin 1.03% 16.75% 1.97%
Free cash flow margin (32.95%) 2.91% 2.91%
Return on equity 0.00% 12.88% 12.31%
Return on assets 1.49% 6.47% 0.88%
Return on invested capital 23.50% 11.98% 2.86%

Growth

Metric EQPT MGRC Rental & Leasing Services median
Revenue growth (TTM) — 2.13% 4.47%
EPS growth (last fiscal year) 102.08% (32.66%) 1.04%
Revenue growth, 5-year CAGR — 10.52% 11.45%
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 1.28
Current ratio 2.42 0.25 1.01
Net debt to EBITDA 4.59 0.00 4.19

Dividend

Metric EQPT MGRC Rental & Leasing Services median
Dividend yield — 1.54% 1.38%
Payout ratio — 0.30 0.24

Size

Metric EQPT MGRC Rental & Leasing Services median
Market cap 3.47b 3.11b 3.37b

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