WallStSmart

McGrath RentCorp (MGRC)vsRaytheon Technologies Corp (RTX)

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Smart Verdict

WallStSmart Research — data-driven comparison

Raytheon Technologies Corp generates 9471% more annual revenue ($90.37B vs $944.24M). MGRC leads profitability with a 16.6% profit margin vs 8.0%. MGRC appears more attractively valued with a PEG of 1.18. MGRC earns a higher WallStSmart Score of 69/100 (B-).

MGRC

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 4.7Quality: 5.0

RTX

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 3.3Quality: 6.0
Piotroski: 6/9Altman Z: 1.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MGRCSignificantly Overvalued (-26.4%)

Margin of Safety

-26.4%

Fair Value

$91.46

Current Price

$118.80

$27.34 premium

UndervaluedFair: $91.46Overvalued
RTXSignificantly Overvalued (-52.1%)

Margin of Safety

-52.1%

Fair Value

$115.75

Current Price

$176.07

$60.32 premium

UndervaluedFair: $115.75Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGRC3 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

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

RTX3 strengths · Avg: 8.7/10
Market CapQuality
$237.11B10/10

Mega-cap, among the largest globally

EPS GrowthGrowth
32.5%8/10

Earnings expanding 32.5% YoY

Free Cash FlowQuality
$1.21B8/10

Generating 1.2B in free cash flow

Areas to Watch

MGRC0 concerns · Avg: 0/10

No major concerns identified

RTX3 concerns · Avg: 4.0/10
PEG RatioValuation
2.394/10

Expensive relative to growth rate

P/E RatioValuation
33.0x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.554/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : MGRC

The strongest argument for MGRC centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 16.6% and operating margin at 28.9%. PEG of 1.18 suggests the stock is reasonably priced for its growth.

Bull Case : RTX

The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.

Bear Case : MGRC

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

Bear Case : RTX

The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

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

MGRC carries more volatility with a beta of 0.48 — expect wider price swings.

RTX is growing revenue faster at 8.7% — sustainability is the question.

RTX generates stronger free cash flow (1.2B), providing more financial flexibility.

Bottom Line

MGRC scores higher overall (69/100 vs 59/100), 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.

Raytheon Technologies Corp

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.

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