WallStSmart

Deere & Company (DE)vsMcGrath RentCorp (MGRC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Deere & Company generates 5038% more annual revenue ($47.93B vs $932.86M). MGRC leads profitability with a 16.4% profit margin vs 10.2%. MGRC appears more attractively valued with a PEG of 1.04. MGRC earns a higher WallStSmart Score of 57/100 (C).

DE

Buy

53

out of 100

Grade: C-

Growth: 4.0Profit: 6.5Value: 4.3Quality: 4.0
Piotroski: 3/9Altman Z: 2.18

MGRC

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 4.7Quality: 6.0
Piotroski: 4/9Altman Z: 2.10
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for DE.

MGRCSignificantly Overvalued (-47.7%)

Margin of Safety

-47.7%

Fair Value

$78.30

Current Price

$118.78

$40.48 premium

UndervaluedFair: $78.30Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DE2 strengths · Avg: 8.5/10
Market CapQuality
$173.06B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.94B8/10

Generating 1.9B in free cash flow

MGRC2 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

Areas to Watch

DE4 concerns · Avg: 3.8/10
PEG RatioValuation
1.594/10

Expensive relative to growth rate

P/E RatioValuation
35.7x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
4.9%4/10

4.9% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

MGRC2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-6.2%2/10

Revenue declined 6.2%

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : DE

The strongest argument for DE centers on Market Cap, Free Cash Flow.

Bull Case : MGRC

The strongest argument for MGRC centers on Price/Book, Operating Margin. Profitability is solid with margins at 16.4% and operating margin at 23.3%. PEG of 1.04 suggests the stock is reasonably priced for its growth.

Bear Case : DE

The primary concerns for DE are PEG Ratio, P/E Ratio, Revenue Growth. Debt-to-equity of 2.29 is elevated, increasing financial risk.

Bear Case : MGRC

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

Key Dynamics to Monitor

DE profiles as a value stock while MGRC is a declining play — different risk/reward profiles.

DE carries more volatility with a beta of 0.87 — expect wider price swings.

DE is growing revenue faster at 4.9% — sustainability is the question.

DE generates stronger free cash flow (1.9B), providing more financial flexibility.

Bottom Line

MGRC scores higher overall (57/100 vs 53/100), backed by strong 16.4% margins. Both earn "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.

Deere & Company

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

John Deere is the brand name of Deere & Company, an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment.

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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