McGrath RentCorp (MGRC) vs WillScot Holdings Corporation (WSC)

McGrath RentCorp and WillScot Holdings Corporation are both Rental & Leasing Services companies. WillScot Holdings Corporation is the larger, with a market value of $3.2B against $2.7B — 1.2× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; McGrath RentCorp trades at 18.2×. McGrath RentCorp grew revenue faster over the last twelve months: −0.92% against −2.51%. McGrath RentCorp has the higher net margin (16.4% vs −3.00%) and the higher return on invested capital (12.0% vs 2.13%). Across the 21 metrics below, McGrath RentCorp leads on 13 and WillScot Holdings Corporation on 8.

Valuation

Metric MGRC WSC Rental & Leasing Services median
P/E 18.20 n/m 19.17
P/S 2.97 1.43 0.99
P/B 2.23 3.61 2.23
Price to free cash flow 35.10 8.87 8.31
EV/EBITDA 7.94 11.94 7.84
EV/Sales 2.97 2.95 2.53
Earnings yield 5.49% (2.04%) 0.95%
Free cash flow yield 2.85% 11.28% 1.43%

Profitability

Metric MGRC WSC Rental & Leasing Services median
Gross margin 48.52% 64.16% 49.40%
Operating margin 25.47% 6.51% 8.49%
Net margin 16.38% (3.00%) 1.01%
Free cash flow margin 8.46% 16.18% 1.87%
Return on equity 12.69% (7.08%) 12.13%
Return on assets 6.33% (1.15%) 0.24%
Return on invested capital 11.96% 2.13% 2.80%

Growth

Metric MGRC WSC Rental & Leasing Services median
Revenue growth (TTM) (0.92%) (2.51%) 3.21%
EPS growth (last fiscal year) (32.66%) (293.33%) —
Revenue growth, 5-year CAGR 10.52% 12.38% 12.97%
Net income growth, 5-year CAGR 8.92% 0.00% 0.00%

Health

Metric MGRC WSC Rental & Leasing Services median
Debt to equity 0.00 3.84 1.48
Current ratio 0.26 0.81 1.36
Net debt to EBITDA 0.00 5.73 4.32

Dividend

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

Size

Metric MGRC WSC Rental & Leasing Services median
Market cap 2.73b 3.22b 2.42b

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