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 $1.1B against $630.9M — 1.8× the size. Hertz Global Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; Willis Lease Finance Corporation trades at 13.0×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 17.3% against 3.39%. Willis Lease Finance Corporation has the higher net margin (11.2% vs −3.13%) and the higher return on invested capital (2.62% vs 0.43%). Across the 19 metrics below, Willis Lease Finance Corporation leads on 14 and Hertz Global Holdings, Inc. on 5.

Valuation

Metric HTZ WLFC Rental & Leasing Services median
P/E n/m 13.03 19.17
P/S 0.06 1.50 0.99
P/B n/m 1.62 2.23
Price to free cash flow n/m n/m 8.31
EV/EBITDA 14.20 8.70 7.84
EV/Sales 4.13 4.31 2.53
Earnings yield (50.57%) 7.68% 0.95%
Free cash flow yield (191.78%) (8.24%) 1.43%

Profitability

Metric HTZ WLFC Rental & Leasing Services median
Gross margin 36.91% 85.43% 49.40%
Operating margin 2.76% 32.48% 8.49%
Net margin (3.13%) 11.24% 1.01%
Free cash flow margin (12.01%) (11.63%) 1.87%
Return on equity 49.29% 12.96% 12.13%
Return on assets (1.19%) 2.26% 0.24%
Return on invested capital 0.43% 2.62% 2.80%

Growth

Metric HTZ WLFC Rental & Leasing Services median
Revenue growth (TTM) 3.39% 17.34% 3.21%
EPS growth (last fiscal year) 73.98% 0.33% —
Revenue growth, 5-year CAGR 10.09% 20.39% 12.97%
Net income growth, 5-year CAGR 0.00% 75.97% 0.00%

Health

Metric HTZ WLFC Rental & Leasing Services median
Debt to equity (59.70) 3.27 1.48
Current ratio 1.53 1.63 1.36
Net debt to EBITDA 6.72 5.98 4.32

Dividend

Metric HTZ WLFC Rental & Leasing Services median
Dividend yield — — 1.59%
Payout ratio 0.00 0.00 0.00

Size

Metric HTZ WLFC Rental & Leasing Services median
Market cap 630.92m 1.12b 2.42b

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