Ryder System, Inc. (R) vs United Rentals, Inc. (URI)

Ryder System, Inc. and United Rentals, Inc. are both Rental & Leasing Services companies. United Rentals, Inc. is the larger, with a market value of $65.2B against $9.2B — 7.1× the size. Ryder System, Inc. trades at the lower P/E: 19.4× against 24.7×. United Rentals, Inc. grew revenue faster over the last twelve months: 6.88% against 1.12%. United Rentals, Inc. has the higher net margin (15.7% vs 3.87%) and the higher return on invested capital (11.2% vs 6.20%). Both pay a dividend; Ryder System, Inc. yields more (1.57% vs 0.75%). Across the 23 metrics below, United Rentals, Inc. leads on 13 and Ryder System, Inc. on 10.

Valuation

Metric R URI Rental & Leasing Services median
P/E 19.40 24.72 18.17
P/S 0.72 3.83 0.92
P/B 3.18 6.98 2.15
Price to free cash flow 7.85 30.94 7.80
EV/EBITDA 5.73 10.61 7.72
EV/Sales 1.28 4.67 2.47
Earnings yield 5.16% 4.05% 1.00%
Free cash flow yield 12.74% 3.23% 1.43%

Profitability

Metric R URI Rental & Leasing Services median
Gross margin 19.82% 38.36% 49.40%
Operating margin 7.82% 24.79% 8.49%
Net margin 3.87% 15.67% 1.01%
Free cash flow margin 9.11% 12.37% 1.87%
Return on equity 16.66% 28.90% 12.13%
Return on assets 3.05% 8.72% 0.24%
Return on invested capital 6.20% 11.17% 2.80%

Growth

Metric R URI Rental & Leasing Services median
Revenue growth (TTM) 1.12% 6.88% 3.21%
EPS growth (last fiscal year) 7.96% (0.21%) (8.44%)
Revenue growth, 5-year CAGR 8.51% 13.55% 12.97%
Net income growth, 5-year CAGR 0.00% 22.89% 0.00%

Health

Metric R URI Rental & Leasing Services median
Debt to equity 2.59 1.54 1.48
Current ratio 0.65 0.76 1.36
Net debt to EBITDA 2.56 1.94 4.32

Dividend

Metric R URI Rental & Leasing Services median
Dividend yield 1.57% 0.75% 1.56%
Payout ratio 0.30 0.18 0.22

Size

Metric R URI Rental & Leasing Services median
Market cap 9.21b 65.20b 2.43b

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