McGrath RentCorp (MGRC) vs Willis Lease Finance Corporation (WLFC)

McGrath RentCorp and Willis Lease Finance Corporation are both Rental & Leasing Services companies. McGrath RentCorp is the larger, with a market value of $3.1B against $992.9M — 3.1× the size. Willis Lease Finance Corporation trades at the lower P/E: 12.9× against 19.6×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 20.1% against 2.13%. McGrath RentCorp has the higher net margin (16.8% vs 8.86%) and the higher return on invested capital (12.0% vs 1.87%). Both pay a dividend; McGrath RentCorp yields more (1.54% vs 1.15%). Across the 22 metrics below, McGrath RentCorp leads on 11 and Willis Lease Finance Corporation on 11.

Valuation

Metric MGRC WLFC Rental & Leasing Services median
P/E 19.64 12.89 20.11
P/S 3.28 1.19 1.11
P/B 2.44 1.34 2.44
Price to free cash flow 112.64 n/m 11.04
EV/EBITDA 8.70 9.49 8.70
EV/Sales 3.28 4.07 2.87
Earnings yield 5.09% 7.76% 3.40%
Free cash flow yield 0.89% (27.16%) 0.63%

Profitability

Metric MGRC WLFC Rental & Leasing Services median
Gross margin 48.81% 75.41% 48.46%
Operating margin 25.74% 26.58% 8.37%
Net margin 16.75% 8.86% 1.97%
Free cash flow margin 2.91% (31.54%) 2.91%
Return on equity 12.88% 10.61% 12.31%
Return on assets 6.47% 1.96% 0.88%
Return on invested capital 11.98% 1.87% 2.86%

Growth

Metric MGRC WLFC Rental & Leasing Services median
Revenue growth (TTM) 2.13% 20.14% 4.47%
EPS growth (last fiscal year) (32.66%) 0.33% 1.04%
Revenue growth, 5-year CAGR 10.52% 20.39% 11.45%
Net income growth, 5-year CAGR 8.92% 75.97% 0.00%

Health

Metric MGRC WLFC Rental & Leasing Services median
Debt to equity 0.00 3.45 1.28
Current ratio 0.25 1.13 1.01
Net debt to EBITDA 0.00 5.98 4.19

Dividend

Metric MGRC WLFC Rental & Leasing Services median
Dividend yield 1.54% 1.15% 1.38%
Payout ratio 0.30 0.16 0.24

Size

Metric MGRC WLFC Rental & Leasing Services median
Market cap 3.11b 992.93m 3.37b

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