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 $2.7B against $1.1B — 2.4× the size. Willis Lease Finance Corporation trades at the lower P/E: 13.0× against 18.2×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 17.3% against −0.92%. McGrath RentCorp has the higher net margin (16.4% vs 11.2%) and the higher return on invested capital (12.0% vs 2.62%). Across the 21 metrics below, Willis Lease Finance Corporation leads on 12 and McGrath RentCorp on 9.

Valuation

Metric MGRC WLFC Rental & Leasing Services median
P/E 18.20 13.03 19.17
P/S 2.97 1.50 0.99
P/B 2.23 1.62 2.23
Price to free cash flow 35.10 n/m 8.31
EV/EBITDA 7.94 8.70 7.84
EV/Sales 2.97 4.31 2.53
Earnings yield 5.49% 7.68% 0.95%
Free cash flow yield 2.85% (8.24%) 1.43%

Profitability

Metric MGRC WLFC Rental & Leasing Services median
Gross margin 48.52% 85.43% 49.40%
Operating margin 25.47% 32.48% 8.49%
Net margin 16.38% 11.24% 1.01%
Free cash flow margin 8.46% (11.63%) 1.87%
Return on equity 12.69% 12.96% 12.13%
Return on assets 6.33% 2.26% 0.24%
Return on invested capital 11.96% 2.62% 2.80%

Growth

Metric MGRC WLFC Rental & Leasing Services median
Revenue growth (TTM) (0.92%) 17.34% 3.21%
EPS growth (last fiscal year) (32.66%) 0.33% —
Revenue growth, 5-year CAGR 10.52% 20.39% 12.97%
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 3.27 1.48
Current ratio 0.26 1.63 1.36
Net debt to EBITDA 0.00 5.98 4.32

Dividend

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

Size

Metric MGRC WLFC Rental & Leasing Services median
Market cap 2.73b 1.12b 2.42b

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