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 $5.8B against $4.2B — 1.4× the size. GATX Corporation trades at the lower P/E: 16.4× against 82.7×. 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; Herc Holdings Inc. yields more (2.30% vs 1.56%). Across the 22 metrics below, GATX Corporation leads on 12 and Herc Holdings Inc. on 10.

Valuation

Metric GATX HRI Rental & Leasing Services median
P/E 16.35 82.70 18.17
P/S 2.88 0.84 0.92
P/B 1.65 2.15 2.15
Price to free cash flow n/m 10.20 7.80
EV/EBITDA 14.98 6.28 7.72
EV/Sales 8.58 2.48 2.47
Earnings yield 6.11% 1.21% 1.00%
Free cash flow yield (78.71%) 9.80% 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%) (8.44%)
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 1.56% 2.30% 1.56%
Payout ratio 0.26 1.90 0.22

Size

Metric GATX HRI Rental & Leasing Services median
Market cap 5.83b 4.15b 2.43b

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