WallStSmart

AerCap Holdings NV (AER)vsMcGrath RentCorp (MGRC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AerCap Holdings NV generates 816% more annual revenue ($8.68B vs $947.36M). AER leads profitability with a 45.2% profit margin vs 16.4%. AER appears more attractively valued with a PEG of 0.80. AER earns a higher WallStSmart Score of 85/100 (A-).

AER

Exceptional Buy

85

out of 100

Grade: A-

Growth: 7.3Profit: 8.5Value: 6.7Quality: 3.5
Piotroski: 6/9Altman Z: 0.88

MGRC

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 7.0Value: 5.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AERSignificantly Overvalued (-65.4%)

Margin of Safety

-65.4%

Fair Value

$89.62

Current Price

$136.94

$47.32 premium

UndervaluedFair: $89.62Overvalued
MGRCSignificantly Overvalued (-48.3%)

Margin of Safety

-48.3%

Fair Value

$77.97

Current Price

$108.88

$30.91 premium

UndervaluedFair: $77.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AER6 strengths · Avg: 9.5/10
P/E RatioValuation
6.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
45.2%10/10

Keeps 45 of every $100 in revenue as profit

Operating MarginProfitability
60.9%10/10

Strong operational efficiency at 60.9%

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.808/10

Growing faster than its price suggests

MGRC3 strengths · Avg: 8.0/10
P/E RatioValuation
17.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
21.9%8/10

Strong operational efficiency at 21.9%

Areas to Watch

AER3 concerns · Avg: 1.7/10
Free Cash FlowQuality
$-69.91M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

Debt/EquityHealth
2.341/10

Elevated debt levels

MGRC2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

EPS GrowthGrowth
-4.3%2/10

Earnings declined 4.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AER

The strongest argument for AER centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 45.2% and operating margin at 60.9%. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bull Case : MGRC

The strongest argument for MGRC centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 21.9%. PEG of 1.10 suggests the stock is reasonably priced for its growth.

Bear Case : AER

The primary concerns for AER are Free Cash Flow, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.34 is elevated, increasing financial risk.

Bear Case : MGRC

The primary concerns for MGRC are Revenue Growth, EPS Growth.

Key Dynamics to Monitor

AER profiles as a mature stock while MGRC is a value play — different risk/reward profiles.

AER carries more volatility with a beta of 0.94 — expect wider price swings.

AER is growing revenue faster at 7.9% — sustainability is the question.

MGRC generates stronger free cash flow (34M), providing more financial flexibility.

Bottom Line

AER scores higher overall (85/100 vs 59/100), backed by strong 45.2% margins. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AerCap Holdings NV

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

AerCap Holdings NV is engaged in the leasing, financing, sale and management of commercial aircraft and engines in mainland China, Hong Kong, Macau, the United States, Ireland and internationally. The company is headquartered in Dublin, Ireland.

McGrath RentCorp

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

McGrath RentCorp is a business-to-business rental company in the United States and internationally. The company is headquartered in Livermore, California.

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