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 $5.0B — 1.3× the size. GATX Corporation trades at the lower P/E: 17.4× against 40.8×. GATX Corporation grew revenue faster over the last twelve months: 29.7% against 19.4%. GATX Corporation has the higher net margin (17.4% vs 2.50%) and the lower return on invested capital (2.74% vs 4.21%). Both pay a dividend; Herc Holdings Inc. yields more (1.86% vs 1.38%). 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 17.35 40.81 20.11
P/S 2.99 1.02 1.11
P/B 1.87 2.53 2.44
Price to free cash flow n/m 16.79 11.04
EV/EBITDA 14.08 6.65 8.70
EV/Sales 8.26 2.66 2.87
Earnings yield 5.76% 2.45% 3.40%
Free cash flow yield (67.15%) 5.95% 0.63%

Profitability

Metric GATX HRI Rental & Leasing Services median
Gross margin 74.16% 52.64% 48.46%
Operating margin 29.92% 13.75% 8.37%
Net margin 17.41% 2.50% 1.97%
Free cash flow margin (200.95%) 6.08% 2.91%
Return on equity 12.31% 6.29% 12.31%
Return on assets 2.52% 0.88% 0.88%
Return on invested capital 2.74% 4.21% 2.86%

Growth

Metric GATX HRI Rental & Leasing Services median
Revenue growth (TTM) 29.67% 19.38% 4.47%
EPS growth (last fiscal year) 17.22% (99.59%) 1.04%
Revenue growth, 5-year CAGR 7.55% 19.69% 11.45%
Net income growth, 5-year CAGR 16.72% (57.68%) 0.00%

Health

Metric GATX HRI Rental & Leasing Services median
Debt to equity 3.37 4.10 1.28
Current ratio 2.38 1.08 1.01
Net debt to EBITDA 7.65 4.61 4.19

Dividend

Metric GATX HRI Rental & Leasing Services median
Dividend yield 1.38% 1.86% 1.38%
Payout ratio 0.24 0.76 0.24

Size

Metric GATX HRI Rental & Leasing Services median
Market cap 6.51b 5.01b 3.37b

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