United Rentals, Inc. (URI) vs WillScot Holdings Corporation (WSC)

United Rentals, Inc. and WillScot Holdings Corporation are both Rental & Leasing Services companies. United Rentals, Inc. is the larger, with a market value of $65.2B against $3.0B — 22.0× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; United Rentals, Inc. trades at 24.7×. United Rentals, Inc. grew revenue faster over the last twelve months: 6.88% against −2.51%. United Rentals, Inc. has the higher net margin (15.7% vs −3.00%) and the higher return on invested capital (11.2% vs 2.13%). Both pay a dividend; WillScot Holdings Corporation yields more (1.76% vs 0.75%). Across the 22 metrics below, United Rentals, Inc. leads on 13 and WillScot Holdings Corporation on 9.

Valuation

Metric URI WSC Rental & Leasing Services median
P/E 24.72 n/m 18.17
P/S 3.83 1.25 0.92
P/B 6.98 3.16 2.15
Price to free cash flow 30.94 7.76 7.80
EV/EBITDA 10.61 11.21 7.72
EV/Sales 4.67 2.77 2.47
Earnings yield 4.05% (2.33%) 1.00%
Free cash flow yield 3.23% 12.89% 1.43%

Profitability

Metric URI WSC Rental & Leasing Services median
Gross margin 38.36% 64.16% 49.40%
Operating margin 24.79% 6.51% 8.49%
Net margin 15.67% (3.00%) 1.01%
Free cash flow margin 12.37% 16.18% 1.87%
Return on equity 28.90% (7.08%) 12.13%
Return on assets 8.72% (1.15%) 0.24%
Return on invested capital 11.17% 2.13% 2.80%

Growth

Metric URI WSC Rental & Leasing Services median
Revenue growth (TTM) 6.88% (2.51%) 3.21%
EPS growth (last fiscal year) (0.21%) (293.33%) (8.44%)
Revenue growth, 5-year CAGR 13.55% 12.38% 12.97%
Net income growth, 5-year CAGR 22.89% 0.00% 0.00%

Health

Metric URI WSC Rental & Leasing Services median
Debt to equity 1.54 3.84 1.48
Current ratio 0.76 0.81 1.36
Net debt to EBITDA 1.94 5.73 4.32

Dividend

Metric URI WSC Rental & Leasing Services median
Dividend yield 0.75% 1.76% 1.56%
Payout ratio 0.18 — 0.22

Size

Metric URI WSC Rental & Leasing Services median
Market cap 65.20b 2.97b 2.43b

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