GATX Corporation (GATX) vs United Rentals, Inc. (URI)

GATX Corporation and United Rentals, Inc. are both Rental & Leasing Services companies. United Rentals, Inc. is the larger, with a market value of $65.2B against $5.8B — 11.2× the size. GATX Corporation trades at the lower P/E: 16.4× against 24.7×. GATX Corporation grew revenue faster over the last twelve months: 22.8% against 6.88%. GATX Corporation has the higher net margin (17.6% vs 15.7%) and the lower return on invested capital (2.46% vs 11.2%). Both pay a dividend; GATX Corporation yields more (1.56% vs 0.75%). Across the 22 metrics below, GATX Corporation leads on 11 and United Rentals, Inc. on 11.

Valuation

Metric GATX URI Rental & Leasing Services median
P/E 16.35 24.72 18.17
P/S 2.88 3.83 0.92
P/B 1.65 6.98 2.15
Price to free cash flow n/m 30.94 7.80
EV/EBITDA 14.98 10.61 7.72
EV/Sales 8.58 4.67 2.47
Earnings yield 6.11% 4.05% 1.00%
Free cash flow yield (78.71%) 3.23% 1.43%

Profitability

Metric GATX URI Rental & Leasing Services median
Gross margin 73.63% 38.36% 49.40%
Operating margin 29.05% 24.79% 8.49%
Net margin 17.64% 15.67% 1.01%
Free cash flow margin (226.65%) 12.37% 1.87%
Return on equity 11.57% 28.90% 12.13%
Return on assets 2.34% 8.72% 0.24%
Return on invested capital 2.46% 11.17% 2.80%

Growth

Metric GATX URI Rental & Leasing Services median
Revenue growth (TTM) 22.81% 6.88% 3.21%
EPS growth (last fiscal year) 17.22% (0.21%) (8.44%)
Revenue growth, 5-year CAGR 7.55% 13.55% 12.97%
Net income growth, 5-year CAGR 16.72% 22.89% 0.00%

Health

Metric GATX URI Rental & Leasing Services median
Debt to equity 3.44 1.54 1.48
Current ratio 3.90 0.76 1.36
Net debt to EBITDA 7.65 1.94 4.32

Dividend

Metric GATX URI Rental & Leasing Services median
Dividend yield 1.56% 0.75% 1.56%
Payout ratio 0.26 0.18 0.22

Size

Metric GATX URI Rental & Leasing Services median
Market cap 5.83b 65.20b 2.43b

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