WallStSmart

McGrath RentCorp (MGRC)vsPACCAR Inc (PCAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PACCAR Inc generates 2832% more annual revenue ($27.78B vs $947.36M). MGRC leads profitability with a 16.4% profit margin vs 8.9%. MGRC appears more attractively valued with a PEG of 1.18. MGRC earns a higher WallStSmart Score of 59/100 (C).

MGRC

Buy

59

out of 100

Grade: C

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

PCAR

Buy

54

out of 100

Grade: C-

Growth: 4.0Profit: 6.0Value: 4.7Quality: 6.5
Piotroski: 1/9Altman Z: 2.09
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MGRCSignificantly Overvalued (-47.5%)

Margin of Safety

-47.5%

Fair Value

$78.40

Current Price

$117.00

$38.60 premium

UndervaluedFair: $78.40Overvalued
PCARSignificantly Overvalued (-62.2%)

Margin of Safety

-62.2%

Fair Value

$85.20

Current Price

$133.87

$48.67 premium

UndervaluedFair: $85.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

Operating MarginProfitability
21.9%8/10

Strong operational efficiency at 21.9%

PCAR1 strengths · Avg: 9.0/10
Market CapQuality
$69.00B9/10

Large-cap with strong market position

Areas to Watch

MGRC2 concerns · Avg: 3.0/10
Revenue GrowthGrowth
1.6%4/10

1.6% revenue growth

EPS GrowthGrowth
-4.3%2/10

Earnings declined 4.3%

PCAR3 concerns · Avg: 3.0/10
P/E RatioValuation
26.9x4/10

Moderate valuation

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Revenue GrowthGrowth
-8.9%2/10

Revenue declined 8.9%

Comparative Analysis Report

WallStSmart Research

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 21.9%. PEG of 1.18 suggests the stock is reasonably priced for its growth.

Bull Case : PCAR

The strongest argument for PCAR centers on Market Cap. PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bear Case : MGRC

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

Bear Case : PCAR

The primary concerns for PCAR are P/E Ratio, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

PCAR carries more volatility with a beta of 0.98 — expect wider price swings.

MGRC is growing revenue faster at 1.6% — sustainability is the question.

PCAR generates stronger free cash flow (825M), providing more financial flexibility.

Monitor RENTAL & LEASING SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

MGRC scores higher overall (59/100 vs 54/100), 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.

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.

PACCAR Inc

INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA

PACCAR Inc is an American Fortune 500 company and counts among the largest manufacturers of medium- and heavy-duty trucks in the world. PACCAR is engaged in the design, manufacture and customer support of light-, medium- and heavy-duty trucks under the Kenworth, Peterbilt, Leyland Trucks, and DAF nameplates. PACCAR also designs and manufactures powertrains, provides financial services and information technology, and distributes truck parts related to its principal business.

Want to dig deeper into these stocks?