Aaron's Holdings Company, Inc. (PRG) vs Willis Lease Finance Corporation (WLFC)

Aaron's Holdings Company, Inc. and Willis Lease Finance Corporation are both Rental & Leasing Services companies. Aaron's Holdings Company, Inc. is the larger, with a market value of $1.2B against $813.0M — 1.5× the size. Aaron's Holdings Company, Inc. trades at the lower P/E: 8.4× against 9.0×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 17.3% against 7.96%. Willis Lease Finance Corporation has the higher net margin (11.2% vs 5.61%) and the lower return on invested capital (2.62% vs 8.67%). Both pay a dividend; Aaron's Holdings Company, Inc. yields more (1.77% vs 1.42%). Across the 22 metrics below, Aaron's Holdings Company, Inc. leads on 15 and Willis Lease Finance Corporation on 7.

Valuation

Metric PRG WLFC Rental & Leasing Services median
P/E 8.42 9.03 18.17
P/S 0.48 1.04 0.92
P/B 1.55 1.12 2.15
Price to free cash flow 3.90 n/m 7.80
EV/EBITDA 1.15 7.77 7.72
EV/Sales 0.78 3.85 2.47
Earnings yield 11.87% 11.07% 1.00%
Free cash flow yield 25.62% (11.88%) 1.43%

Profitability

Metric PRG WLFC Rental & Leasing Services median
Gross margin 94.71% 85.43% 49.40%
Operating margin 8.49% 32.48% 8.49%
Net margin 5.61% 11.24% 1.01%
Free cash flow margin 12.20% (11.63%) 1.87%
Return on equity 19.90% 12.96% 12.13%
Return on assets 8.37% 2.26% 0.24%
Return on invested capital 8.67% 2.62% 2.80%

Growth

Metric PRG WLFC Rental & Leasing Services median
Revenue growth (TTM) 7.96% 17.34% 3.21%
EPS growth (last fiscal year) (20.75%) 0.33% (8.44%)
Revenue growth, 5-year CAGR (0.61%) 20.39% 12.97%
Net income growth, 5-year CAGR 0.00% 75.97% 0.00%

Health

Metric PRG WLFC Rental & Leasing Services median
Debt to equity 1.10 3.27 1.48
Current ratio 4.03 1.63 1.36
Net debt to EBITDA 0.16 5.98 4.32

Dividend

Metric PRG WLFC Rental & Leasing Services median
Dividend yield 1.77% 1.42% 1.56%
Payout ratio 0.15 0.13 0.22

Size

Metric PRG WLFC Rental & Leasing Services median
Market cap 1.24b 812.99m 2.43b

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