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

McGrath RentCorp and WillScot Holdings Corporation are both Rental & Leasing Services companies. McGrath RentCorp and WillScot Holdings Corporation are of similar size ($3.2B and $3.1B). WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; McGrath RentCorp trades at 19.3×. McGrath RentCorp grew revenue faster over the last twelve months: 2.13% against 0.44%. McGrath RentCorp has the higher net margin (16.8% vs −2.60%) and the higher return on invested capital (12.0% vs 2.23%). Both pay a dividend; McGrath RentCorp yields more (1.57% vs 1.49%). Across the 22 metrics below, McGrath RentCorp leads on 14 and WillScot Holdings Corporation on 8.

Valuation

Metric MGRC WSC Rental & Leasing Services median
P/E 19.25 n/m 19.79
P/S 3.21 1.47 1.12
P/B 2.39 3.56 2.56
Price to free cash flow 110.40 9.03 11.09
EV/EBITDA 8.53 12.08 8.53
EV/Sales 3.21 2.94 2.94
Earnings yield 5.19% (1.75%) 3.37%
Free cash flow yield 0.91% 11.07% 0.64%

Profitability

Metric MGRC WSC Rental & Leasing Services median
Gross margin 48.81% 63.84% 48.46%
Operating margin 25.74% 6.73% 8.37%
Net margin 16.75% (2.60%) 1.97%
Free cash flow margin 2.91% 30.51% 2.91%
Return on equity 12.88% (6.01%) 12.88%
Return on assets 6.47% (1.01%) 0.88%
Return on invested capital 11.98% 2.23% 2.86%

Growth

Metric MGRC WSC Rental & Leasing Services median
Revenue growth (TTM) 2.13% 0.44% 4.47%
EPS growth (last fiscal year) (32.66%) (293.33%) 1.04%
Revenue growth, 5-year CAGR 10.52% 12.38% 11.45%
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 3.60 1.28
Current ratio 0.25 0.78 0.87
Net debt to EBITDA 0.00 5.73 4.19

Dividend

Metric MGRC WSC Rental & Leasing Services median
Dividend yield 1.57% 1.49% 1.40%
Payout ratio 0.30 — 0.24

Size

Metric MGRC WSC Rental & Leasing Services median
Market cap 3.11b 3.23b 3.17b

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