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 $64.6B against $6.5B — 9.9× the size. GATX Corporation trades at the lower P/E: 16.8× against 23.2×. GATX Corporation grew revenue faster over the last twelve months: 29.7% against 9.45%. GATX Corporation has the higher net margin (17.5% vs 16.3%) and the lower return on invested capital (2.74% vs 11.5%). Both pay a dividend; GATX Corporation yields more (1.41% vs 0.73%). Across the 22 metrics below, United Rentals, Inc. leads on 12 and GATX Corporation on 10.

Valuation

Metric GATX URI Rental & Leasing Services median
P/E 16.79 23.20 19.79
P/S 2.92 3.75 1.12
P/B 8.58 6.77 2.56
Price to free cash flow n/m 27.79 11.09
EV/EBITDA 13.97 10.33 8.53
EV/Sales 8.20 4.58 2.94
Earnings yield 5.96% 4.31% 3.37%
Free cash flow yield (69.12%) 3.60% 0.64%

Profitability

Metric GATX URI Rental & Leasing Services median
Gross margin 74.16% 39.08% 48.46%
Operating margin 29.92% 25.54% 8.37%
Net margin 17.47% 16.33% 1.97%
Free cash flow margin (202.11%) 13.50% 2.91%
Return on equity 22.25% 30.56% 12.88%
Return on assets 2.53% 9.09% 0.88%
Return on invested capital 2.74% 11.53% 2.86%

Growth

Metric GATX URI Rental & Leasing Services median
Revenue growth (TTM) 29.67% 9.45% 4.47%
EPS growth (last fiscal year) 17.22% (0.21%) 1.04%
Revenue growth, 5-year CAGR 7.55% 13.55% 11.45%
Net income growth, 5-year CAGR 16.72% 22.89% 0.00%

Health

Metric GATX URI Rental & Leasing Services median
Debt to equity 3.37 1.51 1.28
Current ratio 2.38 0.80 0.87
Net debt to EBITDA 7.65 1.94 4.19

Dividend

Metric GATX URI Rental & Leasing Services median
Dividend yield 1.41% 0.73% 1.40%
Payout ratio 0.24 0.17 0.24

Size

Metric GATX URI Rental & Leasing Services median
Market cap 6.51b 64.63b 3.17b

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