McGrath RentCorp (MGRC) vs U-Haul Holding Company (UHAL)

McGrath RentCorp and U-Haul Holding Company are both Rental & Leasing Services companies. U-Haul Holding Company is the larger, with a market value of $10.1B against $2.8B — 3.6× the size. McGrath RentCorp trades at the lower P/E: 18.2× against 407×. U-Haul Holding Company grew revenue faster over the last twelve months: 3.02% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs 0.47%) and the higher return on invested capital (12.0% vs 1.81%). Across the 21 metrics below, McGrath RentCorp leads on 17 and U-Haul Holding Company on 4.

Valuation

Metric MGRC UHAL Rental & Leasing Services median
P/E 18.17 407.29 18.17
P/S 2.97 1.83 0.92
P/B 2.22 1.43 2.15
Price to free cash flow 35.04 n/m 7.80
EV/EBITDA 7.93 10.94 7.72
EV/Sales 2.96 2.99 2.47
Earnings yield 5.50% 0.25% 1.00%
Free cash flow yield 2.85% (4.85%) 1.43%

Profitability

Metric MGRC UHAL Rental & Leasing Services median
Gross margin 48.52% 28.88% 49.40%
Operating margin 25.47% 6.99% 8.49%
Net margin 16.38% 0.47% 1.01%
Free cash flow margin 8.46% (8.89%) 1.87%
Return on equity 12.69% 0.36% 12.13%
Return on assets 6.33% 0.13% 0.24%
Return on invested capital 11.96% 1.81% 2.80%

Growth

Metric MGRC UHAL Rental & Leasing Services median
Revenue growth (TTM) (0.92%) 3.02% 3.21%
EPS growth (last fiscal year) (32.66%) (85.80%) (8.44%)
Revenue growth, 5-year CAGR 10.52% 5.86% 12.97%
Net income growth, 5-year CAGR 8.92% (38.90%) 0.00%

Health

Metric MGRC UHAL Rental & Leasing Services median
Debt to equity 0.00 1.06 1.48
Current ratio 0.26 1.77 1.36
Net debt to EBITDA 0.00 4.22 4.32

Dividend

Metric MGRC UHAL Rental & Leasing Services median
Dividend yield 1.74% — 1.56%
Payout ratio 0.32 — 0.22

Size

Metric MGRC UHAL Rental & Leasing Services median
Market cap 2.76b 10.07b 2.43b

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