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 17.4×. GATX Corporation grew revenue faster over the last twelve months: 29.7% against 0.44%. GATX Corporation has the higher net margin (17.4% vs −2.60%) and the higher return on invested capital (2.74% vs 2.23%). Both pay a dividend; WillScot Holdings Corporation yields more (1.57% vs 1.38%). Across the 21 metrics below, GATX Corporation leads on 13 and WillScot Holdings Corporation on 8.

Valuation

Metric GATX WSC Rental & Leasing Services median
P/E 17.35 n/m 20.11
P/S 2.99 1.39 1.11
P/B 1.87 3.37 2.44
Price to free cash flow n/m 8.57 11.04
EV/EBITDA 14.08 11.77 8.70
EV/Sales 8.26 2.87 2.87
Earnings yield 5.76% (1.85%) 3.40%
Free cash flow yield (67.15%) 11.67% 0.63%

Profitability

Metric GATX WSC Rental & Leasing Services median
Gross margin 74.16% 63.84% 48.46%
Operating margin 29.92% 6.73% 8.37%
Net margin 17.41% (2.60%) 1.97%
Free cash flow margin (200.95%) 30.51% 2.91%
Return on equity 12.31% (6.01%) 12.31%
Return on assets 2.52% (1.01%) 0.88%
Return on invested capital 2.74% 2.23% 2.86%

Growth

Metric GATX WSC Rental & Leasing Services median
Revenue growth (TTM) 29.67% 0.44% 4.47%
EPS growth (last fiscal year) 17.22% (293.33%) 1.04%
Revenue growth, 5-year CAGR 7.55% 12.38% 11.45%
Net income growth, 5-year CAGR 16.72% 0.00% 0.00%

Health

Metric GATX WSC Rental & Leasing Services median
Debt to equity 3.37 3.60 1.28
Current ratio 2.38 0.78 1.01
Net debt to EBITDA 7.65 5.73 4.19

Dividend

Metric GATX WSC Rental & Leasing Services median
Dividend yield 1.38% 1.57% 1.38%
Payout ratio 0.24 — 0.24

Size

Metric GATX WSC Rental & Leasing Services median
Market cap 6.51b 3.23b 3.37b

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