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 $3.2B against $992.9M — 3.3× the size. WillScot Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; Willis Lease Finance Corporation trades at 12.9×. Willis Lease Finance Corporation grew revenue faster over the last twelve months: 20.1% against 0.44%. Willis Lease Finance Corporation has the higher net margin (8.86% vs −2.60%) and the lower return on invested capital (1.87% vs 2.23%). Both pay a dividend; WillScot Holdings Corporation yields more (1.57% vs 1.15%). Across the 21 metrics below, Willis Lease Finance Corporation leads on 15 and WillScot Holdings Corporation on 6.

Valuation

Metric WLFC WSC Rental & Leasing Services median
P/E 12.89 n/m 20.11
P/S 1.19 1.39 1.11
P/B 1.34 3.37 2.44
Price to free cash flow n/m 8.57 11.04
EV/EBITDA 9.49 11.77 8.70
EV/Sales 4.07 2.87 2.87
Earnings yield 7.76% (1.85%) 3.40%
Free cash flow yield (27.16%) 11.67% 0.63%

Profitability

Metric WLFC WSC Rental & Leasing Services median
Gross margin 75.41% 63.84% 48.46%
Operating margin 26.58% 6.73% 8.37%
Net margin 8.86% (2.60%) 1.97%
Free cash flow margin (31.54%) 30.51% 2.91%
Return on equity 10.61% (6.01%) 12.31%
Return on assets 1.96% (1.01%) 0.88%
Return on invested capital 1.87% 2.23% 2.86%

Growth

Metric WLFC WSC Rental & Leasing Services median
Revenue growth (TTM) 20.14% 0.44% 4.47%
EPS growth (last fiscal year) 0.33% (293.33%) 1.04%
Revenue growth, 5-year CAGR 20.39% 12.38% 11.45%
Net income growth, 5-year CAGR 75.97% 0.00% 0.00%

Health

Metric WLFC WSC Rental & Leasing Services median
Debt to equity 3.45 3.60 1.28
Current ratio 1.13 0.78 1.01
Net debt to EBITDA 5.98 5.73 4.19

Dividend

Metric WLFC WSC Rental & Leasing Services median
Dividend yield 1.15% 1.57% 1.38%
Payout ratio 0.16 — 0.24

Size

Metric WLFC WSC Rental & Leasing Services median
Market cap 992.93m 3.23b 3.37b

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