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 $2.8B against $1.2B — 2.2× the size. Aaron's Holdings Company, Inc. trades at the lower P/E: 8.4× 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 (2.17% vs 1.77%). 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 18.17 8.42 18.17
P/S 2.97 0.48 0.92
P/B 2.22 1.55 2.15
Price to free cash flow 35.04 3.90 7.80
EV/EBITDA 7.93 1.15 7.72
EV/Sales 2.96 0.78 2.47
Earnings yield 5.50% 11.87% 1.00%
Free cash flow yield 2.85% 25.62% 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%) (8.44%)
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 2.17% 1.77% 1.56%
Payout ratio 0.40 0.15 0.22

Size

Metric MGRC PRG Rental & Leasing Services median
Market cap 2.76b 1.24b 2.43b

Compare with another peer

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