WallStSmart

McGrath RentCorp (MGRC)vsRyder System Inc (R)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Ryder System Inc generates 1274% more annual revenue ($12.82B vs $932.86M). MGRC leads profitability with a 16.4% profit margin vs 3.9%. R appears more attractively valued with a PEG of 0.86. R earns a higher WallStSmart Score of 59/100 (C).

MGRC

Buy

57

out of 100

Grade: C

Growth: 4.0Profit: 7.0Value: 5.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.10

R

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 5.3Quality: 4.0
Piotroski: 6/9Altman Z: 1.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

MGRCSignificantly Overvalued (-48.4%)

Margin of Safety

-48.4%

Fair Value

$77.95

Current Price

$110.40

$32.45 premium

UndervaluedFair: $77.95Overvalued
RSignificantly Overvalued (-79.5%)

Margin of Safety

-79.5%

Fair Value

$121.03

Current Price

$243.30

$122.27 premium

UndervaluedFair: $121.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

MGRC3 strengths · Avg: 8.0/10
P/E RatioValuation
17.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Operating MarginProfitability
23.3%8/10

Strong operational efficiency at 23.3%

R1 strengths · Avg: 8.0/10
PEG RatioValuation
0.868/10

Growing faster than its price suggests

Areas to Watch

MGRC2 concerns · Avg: 2.0/10
Revenue GrowthGrowth
-6.2%2/10

Revenue declined 6.2%

EPS GrowthGrowth
-6.2%2/10

Earnings declined 6.2%

R3 concerns · Avg: 2.0/10
Profit MarginProfitability
3.9%3/10

3.9% margin — thin

Altman Z-ScoreHealth
1.332/10

Distress zone — elevated risk

Debt/EquityHealth
2.941/10

Elevated debt levels

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 16.4% and operating margin at 23.3%. PEG of 1.02 suggests the stock is reasonably priced for its growth.

Bull Case : R

The strongest argument for R centers on PEG Ratio. PEG of 0.86 suggests the stock is reasonably priced for its growth.

Bear Case : MGRC

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

Bear Case : R

The primary concerns for R are Profit Margin, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.94 is elevated, increasing financial risk. Thin 3.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

R carries more volatility with a beta of 1.00 — expect wider price swings.

R is growing revenue faster at 5.0% — sustainability is the question.

R generates stronger free cash flow (272M), providing more financial flexibility.

Bottom Line

R scores higher overall (59/100 vs 57/100). 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.

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.

Visit Website →

Want to dig deeper into these stocks?