McGrath RentCorp (MGRC)vsUnited Rentals Inc (URI)
MGRC
McGrath RentCorp
$109.44
+0.46%
INDUSTRIALS · Cap: $2.59B
URI
United Rentals Inc
$747.59
+0.10%
INDUSTRIALS · Cap: $47.52B
Smart Verdict
WallStSmart Research — data-driven comparison
United Rentals Inc generates 1605% more annual revenue ($16.10B vs $944.24M). MGRC leads profitability with a 16.6% profit margin vs 15.5%. MGRC appears more attractively valued with a PEG of 1.03. MGRC earns a higher WallStSmart Score of 69/100 (B-).
MGRC
Strong Buy69
out of 100
Grade: B-
URI
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+61.1%
Fair Value
$297.18
Current Price
$109.44
$187.74 discount
Margin of Safety
-233.1%
Fair Value
$262.34
Current Price
$747.59
$485.25 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 28.9%
Earnings expanding 28.1% YoY
Every $100 of equity generates 28 in profit
Strong operational efficiency at 25.2%
Areas to Watch
No major concerns identified
2.8% revenue growth
Grey zone — moderate risk
Weak financial health signals
Earnings declined 1.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 : URI
The strongest argument for URI centers on Return on Equity, Operating Margin. Profitability is solid with margins at 15.5% and operating margin at 25.2%. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bear Case : MGRC
No major red flags identified for MGRC, but monitor valuation.
Bear Case : URI
The primary concerns for URI are Revenue Growth, Altman Z-Score, Piotroski F-Score.
Key Dynamics to Monitor
MGRC profiles as a mature stock while URI is a value play — different risk/reward profiles.
URI 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.
URI generates stronger free cash flow (577M), providing more financial flexibility.
Bottom Line
MGRC scores higher overall (69/100 vs 63/100), 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.
United Rentals Inc
INDUSTRIALS · RENTAL & LEASING SERVICES · USA
United Rentals, Inc. (NYSE: URI) is the world's largest equipment rental company, with about 13 percent of the North American market share as of 2019.
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