Willis Lease Finance Corporation (WLFC) vs WillScot Holdings Corporation (WSC)

Willis Lease Finance Corporation and WillScot Holdings Corporation are both Rental & Leasing Services companies. WillScot Holdings Corporation is the larger, with a market value of $3.0B against $813.0M — 3.7× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; Willis Lease Finance Corporation trades at 9.0×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 17.3% against −2.51%. Willis Lease Finance Corporation has the higher net margin (11.2% vs −3.00%) and the higher return on invested capital (2.62% vs 2.13%). Both pay a dividend; WillScot Holdings Corporation yields more (1.76% vs 1.42%). Across the 21 metrics below, Willis Lease Finance Corporation leads on 16 and WillScot Holdings Corporation on 5.

Valuation

Metric WLFC WSC Rental & Leasing Services median
P/E 9.03 n/m 18.17
P/S 1.04 1.25 0.92
P/B 1.12 3.16 2.15
Price to free cash flow n/m 7.76 7.80
EV/EBITDA 7.77 11.21 7.72
EV/Sales 3.85 2.77 2.47
Earnings yield 11.07% (2.33%) 1.00%
Free cash flow yield (11.88%) 12.89% 1.43%

Profitability

Metric WLFC WSC Rental & Leasing Services median
Gross margin 85.43% 64.16% 49.40%
Operating margin 32.48% 6.51% 8.49%
Net margin 11.24% (3.00%) 1.01%
Free cash flow margin (11.63%) 16.18% 1.87%
Return on equity 12.96% (7.08%) 12.13%
Return on assets 2.26% (1.15%) 0.24%
Return on invested capital 2.62% 2.13% 2.80%

Growth

Metric WLFC WSC Rental & Leasing Services median
Revenue growth (TTM) 17.34% (2.51%) 3.21%
EPS growth (last fiscal year) 0.33% (293.33%) (8.44%)
Revenue growth, 5-year CAGR 20.39% 12.38% 12.97%
Net income growth, 5-year CAGR 75.97% 0.00% 0.00%

Health

Metric WLFC WSC Rental & Leasing Services median
Debt to equity 3.27 3.84 1.48
Current ratio 1.63 0.81 1.36
Net debt to EBITDA 5.98 5.73 4.32

Dividend

Metric WLFC WSC Rental & Leasing Services median
Dividend yield 1.42% 1.76% 1.56%
Payout ratio 0.13 — 0.22

Size

Metric WLFC WSC Rental & Leasing Services median
Market cap 812.99m 2.97b 2.43b

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