WallStSmart

McGrath RentCorp (MGRC)vsSunbelt Rentals Holdings, Inc. (SUNB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sunbelt Rentals Holdings, Inc. generates 1058% more annual revenue ($10.93B vs $944.24M). MGRC leads profitability with a 16.6% profit margin vs 12.7%. MGRC appears more attractively valued with a PEG of 1.03. 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

SUNB

Hold

50

out of 100

Grade: D+

Growth: 4.7Profit: 7.0Value: 8.3Quality: 5.0
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
SUNBSignificantly Overvalued (N/A)

Margin of Safety

N/A

Fair Value

$22.17

Current Price

$69.61

$47.44 premium

UndervaluedFair: $22.17Overvalued

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

SUNB1 strengths · Avg: 8.0/10
Free Cash FlowQuality
$1.50B8/10

Generating 1.5B in free cash flow

Areas to Watch

MGRC0 concerns · Avg: 0/10

No major concerns identified

SUNB2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.7%4/10

2.7% revenue growth

EPS GrowthGrowth
-6.8%2/10

Earnings declined 6.8%

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 : SUNB

The strongest argument for SUNB centers on Free Cash Flow. PEG of 1.04 suggests the stock is reasonably priced for its growth.

Bear Case : MGRC

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

Bear Case : SUNB

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

Key Dynamics to Monitor

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

SUNB carries more volatility with a beta of 1.65 — expect wider price swings.

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

SUNB generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

MGRC scores higher overall (69/100 vs 50/100), backed by strong 16.6% margins. Both earn "Strong Buy" and "Hold" 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.

Sunbelt Rentals Holdings, Inc.

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

Sunbelt Rentals Holdings, Inc., engages in the construction, industrial, and general equipment rental business under the Sunbelt Rentals brand name in the United States, the United Kingdom, and Canada. The company is headquartered in Fort Mill, South Carolina.

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