GATX Corporation (GATX) vs Ryder System, Inc. (R)

GATX Corporation and Ryder System, Inc. are both Rental & Leasing Services companies. Ryder System, Inc. is the larger, with a market value of $10.3B against $6.5B — 1.6× the size. GATX Corporation trades at the lower P/E: 17.4× against 20.6×. GATX Corporation grew revenue faster over the last twelve months: 29.7% against 3.16%. GATX Corporation has the higher net margin (17.4% vs 3.98%) and the lower return on invested capital (2.74% vs 6.45%). Both pay a dividend; Ryder System, Inc. yields more (1.39% vs 1.38%). Across the 22 metrics below, Ryder System, Inc. leads on 12 and GATX Corporation on 10.

Valuation

Metric GATX R Rental & Leasing Services median
P/E 17.35 20.57 20.11
P/S 2.99 0.79 1.11
P/B 1.87 3.47 2.44
Price to free cash flow n/m 7.16 11.04
EV/EBITDA 14.08 6.00 8.70
EV/Sales 8.26 1.33 2.87
Earnings yield 5.76% 4.86% 3.40%
Free cash flow yield (67.15%) 13.96% 0.63%

Profitability

Metric GATX R Rental & Leasing Services median
Gross margin 74.16% 19.58% 48.46%
Operating margin 29.92% 7.87% 8.37%
Net margin 17.41% 3.98% 1.97%
Free cash flow margin (200.95%) 11.02% 2.91%
Return on equity 12.31% 17.13% 12.31%
Return on assets 2.52% 3.18% 0.88%
Return on invested capital 2.74% 6.45% 2.86%

Growth

Metric GATX R Rental & Leasing Services median
Revenue growth (TTM) 29.67% 3.16% 4.47%
EPS growth (last fiscal year) 17.22% 7.96% 1.04%
Revenue growth, 5-year CAGR 7.55% 8.51% 11.45%
Net income growth, 5-year CAGR 16.72% 0.00% 0.00%

Health

Metric GATX R Rental & Leasing Services median
Debt to equity 3.37 2.42 1.28
Current ratio 2.38 0.67 1.01
Net debt to EBITDA 7.65 2.56 4.19

Dividend

Metric GATX R Rental & Leasing Services median
Dividend yield 1.38% 1.39% 1.38%
Payout ratio 0.24 0.29 0.24

Size

Metric GATX R Rental & Leasing Services median
Market cap 6.51b 10.33b 3.37b

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