McGrath RentCorp (MGRC) vs Aaron's Holdings Company, Inc. (PRG)

McGrath RentCorp and Aaron's Holdings Company, Inc. are both Rental & Leasing Services companies. McGrath RentCorp is the larger, with a market value of $3.1B against $1.5B — 2.0× the size. Aaron's Holdings Company, Inc. trades at the lower P/E: 10.3× against 19.6×. Aaron's Holdings Company, Inc. grew revenue faster over the last twelve months: 15.4% against 2.13%. McGrath RentCorp has the higher net margin (16.8% vs 5.46%) and the higher return on invested capital (12.0% vs 9.46%). Both pay a dividend; McGrath RentCorp yields more (1.54% vs 1.41%). Across the 23 metrics below, Aaron's Holdings Company, Inc. leads on 15 and McGrath RentCorp on 8.

Valuation

Metric MGRC PRG Rental & Leasing Services median
P/E 19.64 10.29 20.11
P/S 3.28 0.56 1.11
P/B 2.44 1.91 2.44
Price to free cash flow 112.64 4.89 11.04
EV/EBITDA 8.70 1.28 8.70
EV/Sales 3.28 0.83 2.87
Earnings yield 5.09% 9.72% 3.40%
Free cash flow yield 0.89% 20.46% 0.63%

Profitability

Metric MGRC PRG Rental & Leasing Services median
Gross margin 48.81% 92.25% 48.46%
Operating margin 25.74% 8.52% 8.37%
Net margin 16.75% 5.46% 1.97%
Free cash flow margin 2.91% 11.44% 2.91%
Return on equity 12.88% 19.95% 12.31%
Return on assets 6.47% 8.37% 0.88%
Return on invested capital 11.98% 9.46% 2.86%

Growth

Metric MGRC PRG Rental & Leasing Services median
Revenue growth (TTM) 2.13% 15.43% 4.47%
EPS growth (last fiscal year) (32.66%) (20.75%) 1.04%
Revenue growth, 5-year CAGR 10.52% (0.61%) 11.45%
Net income growth, 5-year CAGR 8.92% 0.00% 0.00%

Health

Metric MGRC PRG Rental & Leasing Services median
Debt to equity 0.00 1.07 1.28
Current ratio 0.25 3.81 1.01
Net debt to EBITDA 0.00 0.16 4.19

Dividend

Metric MGRC PRG Rental & Leasing Services median
Dividend yield 1.54% 1.41% 1.38%
Payout ratio 0.30 0.15 0.24

Size

Metric MGRC PRG Rental & Leasing Services median
Market cap 3.11b 1.52b 3.37b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack