McGrath RentCorp (MGRC) vs Ryder System, Inc. (R)

McGrath RentCorp and Ryder System, Inc. are both Rental & Leasing Services companies. Ryder System, Inc. is the larger, with a market value of $9.1B against $2.7B — 3.3× the size. McGrath RentCorp trades at the lower P/E: 18.2× against 19.2×. Ryder System, Inc. grew revenue faster over the last twelve months: 1.12% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs 3.87%) and the higher return on invested capital (12.0% vs 6.20%). Both pay a dividend; Ryder System, Inc. yields more (2.28% vs 1.43%). Across the 23 metrics below, McGrath RentCorp leads on 12 and Ryder System, Inc. on 11.

Valuation

Metric MGRC R Rental & Leasing Services median
P/E 18.20 19.17 19.17
P/S 2.97 0.71 0.99
P/B 2.23 3.15 2.23
Price to free cash flow 35.10 7.76 8.31
EV/EBITDA 7.94 5.69 7.84
EV/Sales 2.97 1.27 2.53
Earnings yield 5.49% 5.22% 0.95%
Free cash flow yield 2.85% 12.89% 1.43%

Profitability

Metric MGRC R Rental & Leasing Services median
Gross margin 48.52% 19.82% 49.40%
Operating margin 25.47% 7.82% 8.49%
Net margin 16.38% 3.87% 1.01%
Free cash flow margin 8.46% 9.11% 1.87%
Return on equity 12.69% 16.66% 12.13%
Return on assets 6.33% 3.05% 0.24%
Return on invested capital 11.96% 6.20% 2.80%

Growth

Metric MGRC R Rental & Leasing Services median
Revenue growth (TTM) (0.92%) 1.12% 3.21%
EPS growth (last fiscal year) (32.66%) 7.96% —
Revenue growth, 5-year CAGR 10.52% 8.51% 12.97%
Net income growth, 5-year CAGR 8.92% 0.00% 0.00%

Health

Metric MGRC R Rental & Leasing Services median
Debt to equity 0.00 2.59 1.48
Current ratio 0.26 0.65 1.36
Net debt to EBITDA 0.00 2.56 4.32

Dividend

Metric MGRC R Rental & Leasing Services median
Dividend yield 1.43% 2.28% 1.59%
Payout ratio 0.40 0.22 0.00

Size

Metric MGRC R Rental & Leasing Services median
Market cap 2.73b 9.06b 2.42b

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