Hertz Global Holdings, Inc. (HTZ) vs McGrath RentCorp (MGRC)

Hertz Global Holdings, Inc. and McGrath RentCorp are both Rental & Leasing Services companies. McGrath RentCorp is the larger, with a market value of $2.7B against $630.9M — 4.3× the size. Hertz Global Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; McGrath RentCorp trades at 18.2×. Hertz Global Holdings, Inc. grew revenue faster over the last twelve months: 3.39% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs −3.13%) and the higher return on invested capital (12.0% vs 0.43%). Across the 19 metrics below, McGrath RentCorp leads on 13 and Hertz Global Holdings, Inc. on 6.

Valuation

Metric HTZ MGRC Rental & Leasing Services median
P/E n/m 18.20 19.17
P/S 0.06 2.97 0.99
P/B n/m 2.23 2.23
Price to free cash flow n/m 35.10 8.31
EV/EBITDA 14.20 7.94 7.84
EV/Sales 4.13 2.97 2.53
Earnings yield (50.57%) 5.49% 0.95%
Free cash flow yield (191.78%) 2.85% 1.43%

Profitability

Metric HTZ MGRC Rental & Leasing Services median
Gross margin 36.91% 48.52% 49.40%
Operating margin 2.76% 25.47% 8.49%
Net margin (3.13%) 16.38% 1.01%
Free cash flow margin (12.01%) 8.46% 1.87%
Return on equity 49.29% 12.69% 12.13%
Return on assets (1.19%) 6.33% 0.24%
Return on invested capital 0.43% 11.96% 2.80%

Growth

Metric HTZ MGRC Rental & Leasing Services median
Revenue growth (TTM) 3.39% (0.92%) 3.21%
EPS growth (last fiscal year) 73.98% (32.66%) —
Revenue growth, 5-year CAGR 10.09% 10.52% 12.97%
Net income growth, 5-year CAGR 0.00% 8.92% 0.00%

Health

Metric HTZ MGRC Rental & Leasing Services median
Debt to equity (59.70) 0.00 1.48
Current ratio 1.53 0.26 1.36
Net debt to EBITDA 6.72 0.00 4.32

Dividend

Metric HTZ MGRC Rental & Leasing Services median
Dividend yield — 1.43% 1.59%
Payout ratio 0.00 0.40 0.00

Size

Metric HTZ MGRC Rental & Leasing Services median
Market cap 630.92m 2.73b 2.42b

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