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 $64.6B against $10.3B — 6.3× the size. Ryder System, Inc. trades at the lower P/E: 20.6× against 23.1×. United Rentals, Inc. grew revenue faster over the last twelve months: 9.45% against 3.16%. United Rentals, Inc. has the higher net margin (16.3% vs 3.98%) and the higher return on invested capital (11.5% vs 6.45%). Both pay a dividend; Ryder System, Inc. yields more (1.39% vs 0.73%). 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 20.57 23.05 20.11
P/S 0.79 3.73 1.11
P/B 3.47 6.73 2.44
Price to free cash flow 7.16 27.61 11.04
EV/EBITDA 6.00 10.28 8.70
EV/Sales 1.33 4.56 2.87
Earnings yield 4.86% 4.34% 3.40%
Free cash flow yield 13.96% 3.62% 0.63%

Profitability

Metric R URI Rental & Leasing Services median
Gross margin 19.58% 39.08% 48.46%
Operating margin 7.87% 25.54% 8.37%
Net margin 3.98% 16.33% 1.97%
Free cash flow margin 11.02% 13.50% 2.91%
Return on equity 17.13% 30.56% 12.31%
Return on assets 3.18% 9.09% 0.88%
Return on invested capital 6.45% 11.53% 2.86%

Growth

Metric R URI Rental & Leasing Services median
Revenue growth (TTM) 3.16% 9.45% 4.47%
EPS growth (last fiscal year) 7.96% (0.21%) 1.04%
Revenue growth, 5-year CAGR 8.51% 13.55% 11.45%
Net income growth, 5-year CAGR 0.00% 22.89% 0.00%

Health

Metric R URI Rental & Leasing Services median
Debt to equity 2.42 1.51 1.28
Current ratio 0.67 0.80 1.01
Net debt to EBITDA 2.56 1.94 4.19

Dividend

Metric R URI Rental & Leasing Services median
Dividend yield 1.39% 0.73% 1.38%
Payout ratio 0.29 0.17 0.24

Size

Metric R URI Rental & Leasing Services median
Market cap 10.33b 64.63b 3.37b

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