GATX Corporation (GATX) vs McGrath RentCorp (MGRC)

GATX Corporation and McGrath RentCorp are both Rental & Leasing Services companies. GATX Corporation is the larger, with a market value of $6.5B against $3.1B — 2.1× the size. GATX Corporation trades at the lower P/E: 16.8× against 19.3×. GATX Corporation grew revenue faster over the last twelve months: 29.7% against 2.13%. GATX Corporation has the higher net margin (17.5% vs 16.8%) and the lower return on invested capital (2.74% vs 12.0%). Both pay a dividend; McGrath RentCorp yields more (1.57% vs 1.41%). Across the 22 metrics below, GATX Corporation leads on 11 and McGrath RentCorp on 11.

Valuation

Metric GATX MGRC Rental & Leasing Services median
P/E 16.79 19.25 19.79
P/S 2.92 3.21 1.12
P/B 8.58 2.39 2.56
Price to free cash flow n/m 110.40 11.09
EV/EBITDA 13.97 8.53 8.53
EV/Sales 8.20 3.21 2.94
Earnings yield 5.96% 5.19% 3.37%
Free cash flow yield (69.12%) 0.91% 0.64%

Profitability

Metric GATX MGRC Rental & Leasing Services median
Gross margin 74.16% 48.81% 48.46%
Operating margin 29.92% 25.74% 8.37%
Net margin 17.47% 16.75% 1.97%
Free cash flow margin (202.11%) 2.91% 2.91%
Return on equity 22.25% 12.88% 12.88%
Return on assets 2.53% 6.47% 0.88%
Return on invested capital 2.74% 11.98% 2.86%

Growth

Metric GATX MGRC Rental & Leasing Services median
Revenue growth (TTM) 29.67% 2.13% 4.47%
EPS growth (last fiscal year) 17.22% (32.66%) 1.04%
Revenue growth, 5-year CAGR 7.55% 10.52% 11.45%
Net income growth, 5-year CAGR 16.72% 8.92% 0.00%

Health

Metric GATX MGRC Rental & Leasing Services median
Debt to equity 3.37 0.00 1.28
Current ratio 2.38 0.25 0.87
Net debt to EBITDA 7.65 0.00 4.19

Dividend

Metric GATX MGRC Rental & Leasing Services median
Dividend yield 1.41% 1.57% 1.40%
Payout ratio 0.24 0.30 0.24

Size

Metric GATX MGRC Rental & Leasing Services median
Market cap 6.51b 3.11b 3.17b

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