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 $2.7B against $1.3B — 2.1× the size. Aaron's Holdings Company, Inc. trades at the lower P/E: 8.9× against 18.2×. Aaron's Holdings Company, Inc. grew revenue faster over the last twelve months: 7.96% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs 5.61%) and the higher return on invested capital (12.0% vs 8.67%). Both pay a dividend; McGrath RentCorp yields more (1.43% vs 0.40%). 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 18.20 8.88 19.17
P/S 2.97 0.50 0.99
P/B 2.23 1.63 2.23
Price to free cash flow 35.10 4.12 8.31
EV/EBITDA 7.94 1.19 7.84
EV/Sales 2.97 0.81 2.53
Earnings yield 5.49% 11.26% 0.95%
Free cash flow yield 2.85% 24.29% 1.43%

Profitability

Metric MGRC PRG Rental & Leasing Services median
Gross margin 48.52% 94.71% 49.40%
Operating margin 25.47% 8.49% 8.49%
Net margin 16.38% 5.61% 1.01%
Free cash flow margin 8.46% 12.20% 1.87%
Return on equity 12.69% 19.90% 12.13%
Return on assets 6.33% 8.37% 0.24%
Return on invested capital 11.96% 8.67% 2.80%

Growth

Metric MGRC PRG Rental & Leasing Services median
Revenue growth (TTM) (0.92%) 7.96% 3.21%
EPS growth (last fiscal year) (32.66%) (20.75%) —
Revenue growth, 5-year CAGR 10.52% (0.61%) 12.97%
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 1.10 1.48
Current ratio 0.26 4.03 1.36
Net debt to EBITDA 0.00 0.16 4.32

Dividend

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

Size

Metric MGRC PRG Rental & Leasing Services median
Market cap 2.73b 1.30b 2.42b

Compare with another peer

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