WallStSmart

McGrath RentCorp (MGRC)vsRyder System Inc (R)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ryder System Inc generates 1241% more annual revenue ($12.66B vs $944.24M). MGRC leads profitability with a 16.6% profit margin vs 3.9%. R appears more attractively valued with a PEG of 0.86. MGRC earns a higher WallStSmart Score of 69/100 (B-).

MGRC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.0

R

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 7.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MGRCUndervalued (+61.1%)

Margin of Safety

+61.1%

Fair Value

$297.18

Current Price

$109.44

$187.74 discount

UndervaluedFair: $297.18Overvalued
RSignificantly Overvalued (-30.3%)

Margin of Safety

-30.3%

Fair Value

$166.74

Current Price

$203.64

$36.90 premium

UndervaluedFair: $166.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGRC4 strengths · Avg: 8.0/10
P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

EPS GrowthGrowth
28.1%8/10

Earnings expanding 28.1% YoY

R3 strengths · Avg: 8.0/10
PEG RatioValuation
0.868/10

Growing faster than its price suggests

P/E RatioValuation
17.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

MGRC0 concerns · Avg: 0/10

No major concerns identified

R4 concerns · Avg: 2.8/10
EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Revenue GrowthGrowth
-0.4%2/10

Revenue declined 0.4%

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MGRC

The strongest argument for MGRC centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 16.6% and operating margin at 28.9%. PEG of 1.03 suggests the stock is reasonably priced for its growth.

Bull Case : R

The strongest argument for R centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.86 suggests the stock is reasonably priced for its growth.

Bear Case : MGRC

No major red flags identified for MGRC, but monitor valuation.

Bear Case : R

The primary concerns for R are EPS Growth, Profit Margin, Revenue Growth. Debt-to-equity of 2.84 is elevated, increasing financial risk. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

R carries more volatility with a beta of 0.91 — expect wider price swings.

MGRC is growing revenue faster at 5.3% — sustainability is the question.

R generates stronger free cash flow (344M), providing more financial flexibility.

Bottom Line

MGRC scores higher overall (69/100 vs 56/100), backed by strong 16.6% margins. Both earn "Strong 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.

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.

Ryder System Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

Ryder System, Inc. is a global transportation and logistics company. The company is headquartered in Miami, Florida.

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