Hertz Global Holdings, Inc. (HTZ) vs Willis Lease Finance Corporation (WLFC)

Hertz Global Holdings, Inc. and Willis Lease Finance Corporation are both Rental & Leasing Services companies. Willis Lease Finance Corporation is the larger, with a market value of $992.9M against $638.1M — 1.6× the size. Hertz Global Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Willis Lease Finance Corporation trades at 12.9×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 20.1% against 6.21%. Willis Lease Finance Corporation has the higher net margin (8.86% vs −3.84%) and the higher return on invested capital (1.87% vs 0.00%). Across the 19 metrics below, Willis Lease Finance Corporation leads on 12 and Hertz Global Holdings, Inc. on 7.

Valuation

Metric HTZ WLFC Rental & Leasing Services median
P/E n/m 12.89 20.11
P/S 0.06 1.19 1.11
P/B n/m 1.34 2.44
Price to free cash flow n/m n/m 11.04
EV/EBITDA 13.65 9.49 8.70
EV/Sales 3.91 4.07 2.87
Earnings yield (62.57%) 7.76% 3.40%
Free cash flow yield (193.09%) (27.16%) 0.63%

Profitability

Metric HTZ WLFC Rental & Leasing Services median
Gross margin 36.85% 75.41% 48.46%
Operating margin 0.00% 26.58% 8.37%
Net margin (3.84%) 8.86% 1.97%
Free cash flow margin (12.23%) (31.54%) 2.91%
Return on equity 86.10% 10.61% 12.31%
Return on assets (1.52%) 1.96% 0.88%
Return on invested capital 0.00% 1.87% 2.86%

Growth

Metric HTZ WLFC Rental & Leasing Services median
Revenue growth (TTM) 6.21% 20.14% 4.47%
EPS growth (last fiscal year) 73.98% 0.33% 1.04%
Revenue growth, 5-year CAGR 10.09% 20.39% 11.45%
Net income growth, 5-year CAGR 0.00% 75.97% 0.00%

Health

Metric HTZ WLFC Rental & Leasing Services median
Debt to equity (73.38) 3.45 1.28
Current ratio 1.53 1.13 1.01
Net debt to EBITDA 6.72 5.98 4.19

Dividend

Metric HTZ WLFC Rental & Leasing Services median
Dividend yield — 1.15% 1.38%
Payout ratio — 0.16 0.24

Size

Metric HTZ WLFC Rental & Leasing Services median
Market cap 638.05m 992.93m 3.37b

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