GATX Corporation (GATX) vs Herc Holdings Inc. (HRI)

GATX Corporation and Herc Holdings Inc. are both Rental & Leasing Services companies. GATX Corporation is the larger, with a market value of $6.5B against $4.4B — 1.5× the size. GATX Corporation trades at the lower P/E: 18.2× against 92.2×. Herc Holdings Inc. grew revenue faster over the last twelve months: 28.5% against 22.8%. GATX Corporation has the higher net margin (17.6% vs 1.01%) and the lower return on invested capital (2.46% vs 4.04%). Both pay a dividend; GATX Corporation yields more (1.85% vs 1.68%). Across the 22 metrics below, GATX Corporation leads on 13 and Herc Holdings Inc. on 9.

Valuation

Metric GATX HRI Rental & Leasing Services median
P/E 18.16 92.16 19.17
P/S 3.20 0.93 0.99
P/B 1.83 2.39 2.23
Price to free cash flow n/m 11.37 8.31
EV/EBITDA 15.53 6.52 7.84
EV/Sales 8.89 2.57 2.53
Earnings yield 5.51% 1.09% 0.95%
Free cash flow yield (70.91%) 8.80% 1.43%

Profitability

Metric GATX HRI Rental & Leasing Services median
Gross margin 73.63% 51.98% 49.40%
Operating margin 29.05% 13.12% 8.49%
Net margin 17.64% 1.01% 1.01%
Free cash flow margin (226.65%) 8.20% 1.87%
Return on equity 11.57% 2.58% 12.13%
Return on assets 2.34% 0.35% 0.24%
Return on invested capital 2.46% 4.04% 2.80%

Growth

Metric GATX HRI Rental & Leasing Services median
Revenue growth (TTM) 22.81% 28.50% 3.21%
EPS growth (last fiscal year) 17.22% (99.59%) —
Revenue growth, 5-year CAGR 7.55% 19.69% 12.97%
Net income growth, 5-year CAGR 16.72% (57.68%) 0.00%

Health

Metric GATX HRI Rental & Leasing Services median
Debt to equity 3.44 4.24 1.48
Current ratio 3.90 1.10 1.36
Net debt to EBITDA 7.65 4.61 4.32

Dividend

Metric GATX HRI Rental & Leasing Services median
Dividend yield 1.85% 1.68% 1.59%
Payout ratio 0.35 0.21 0.00

Size

Metric GATX HRI Rental & Leasing Services median
Market cap 6.47b 4.38b 2.42b

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