GATX Corporation (GATX) vs Sunbelt Rentals Holdings, Inc. (SUNB)

GATX Corporation and Sunbelt Rentals Holdings, Inc. are both Rental & Leasing Services companies. Sunbelt Rentals Holdings, Inc. is the larger, with a market value of $31.2B against $6.5B — 4.8× the size. GATX Corporation trades at the lower P/E: 17.4× against 22.6×. GATX Corporation has the higher net margin (17.4% vs 12.8%) and the lower return on invested capital (2.74% vs 9.04%). Both pay a dividend; GATX Corporation yields more (1.38% vs 1.37%). Across the 19 metrics below, GATX Corporation leads on 10 and Sunbelt Rentals Holdings, Inc. on 9.

Valuation

Metric GATX SUNB Rental & Leasing Services median
P/E 17.35 22.62 20.11
P/S 2.99 2.82 1.11
P/B 1.87 4.21 2.44
Price to free cash flow n/m 11.04 11.04
EV/EBITDA 14.08 11.50 8.70
EV/Sales 8.26 3.59 2.87
Earnings yield 5.76% 4.42% 3.40%
Free cash flow yield (67.15%) 9.06% 0.63%

Profitability

Metric GATX SUNB Rental & Leasing Services median
Gross margin 74.16% 39.08% 48.46%
Operating margin 29.92% 20.78% 8.37%
Net margin 17.41% 12.82% 1.97%
Free cash flow margin (200.95%) 25.55% 2.91%
Return on equity 12.31% 0.00% 12.31%
Return on assets 2.52% 12.08% 0.88%
Return on invested capital 2.74% 9.04% 2.86%

Growth

Metric GATX SUNB Rental & Leasing Services median
Revenue growth (TTM) 29.67% — 4.47%
EPS growth (last fiscal year) 17.22% (11.37%) 1.04%
Revenue growth, 5-year CAGR 7.55% — 11.45%
Net income growth, 5-year CAGR 16.72% — 0.00%

Health

Metric GATX SUNB Rental & Leasing Services median
Debt to equity 3.37 1.15 1.28
Current ratio 2.38 0.94 1.01
Net debt to EBITDA 7.65 1.68 4.19

Dividend

Metric GATX SUNB Rental & Leasing Services median
Dividend yield 1.38% 1.37% 1.38%
Payout ratio 0.24 0.31 0.24

Size

Metric GATX SUNB Rental & Leasing Services median
Market cap 6.51b 31.20b 3.37b

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