GATX Corporation (GATX) vs WillScot Holdings Corporation (WSC)

GATX Corporation and WillScot Holdings Corporation are both Rental & Leasing Services companies. GATX Corporation is the larger, with a market value of $6.5B against $3.2B — 2.0× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; GATX Corporation trades at 18.2×. GATX Corporation grew revenue faster over the last twelve months: 22.8% against −2.51%. GATX Corporation has the higher net margin (17.6% vs −3.00%) and the higher return on invested capital (2.46% vs 2.13%). Across the 20 metrics below, GATX Corporation leads on 13 and WillScot Holdings Corporation on 7.

Valuation

Metric GATX WSC Rental & Leasing Services median
P/E 18.16 n/m 19.17
P/S 3.20 1.43 0.99
P/B 1.83 3.61 2.23
Price to free cash flow n/m 8.87 8.31
EV/EBITDA 15.53 11.94 7.84
EV/Sales 8.89 2.95 2.53
Earnings yield 5.51% (2.04%) 0.95%
Free cash flow yield (70.91%) 11.28% 1.43%

Profitability

Metric GATX WSC Rental & Leasing Services median
Gross margin 73.63% 64.16% 49.40%
Operating margin 29.05% 6.51% 8.49%
Net margin 17.64% (3.00%) 1.01%
Free cash flow margin (226.65%) 16.18% 1.87%
Return on equity 11.57% (7.08%) 12.13%
Return on assets 2.34% (1.15%) 0.24%
Return on invested capital 2.46% 2.13% 2.80%

Growth

Metric GATX WSC Rental & Leasing Services median
Revenue growth (TTM) 22.81% (2.51%) 3.21%
EPS growth (last fiscal year) 17.22% (293.33%) —
Revenue growth, 5-year CAGR 7.55% 12.38% 12.97%
Net income growth, 5-year CAGR 16.72% 0.00% 0.00%

Health

Metric GATX WSC Rental & Leasing Services median
Debt to equity 3.44 3.84 1.48
Current ratio 3.90 0.81 1.36
Net debt to EBITDA 7.65 5.73 4.32

Dividend

Metric GATX WSC Rental & Leasing Services median
Dividend yield 1.85% — 1.59%
Payout ratio 0.35 0.00 0.00

Size

Metric GATX WSC Rental & Leasing Services median
Market cap 6.47b 3.22b 2.42b

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