WallStSmart

McGrath RentCorp (MGRC)vsUnited Rentals Inc (URI)

VS

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 Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 7.5Value: 10.0Quality: 5.0

URI

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 9.0Value: 7.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.98
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
URISignificantly Overvalued (-233.1%)

Margin of Safety

-233.1%

Fair Value

$262.34

Current Price

$747.59

$485.25 premium

UndervaluedFair: $262.34Overvalued

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

URI2 strengths · Avg: 8.5/10
Return on EquityProfitability
28.4%9/10

Every $100 of equity generates 28 in profit

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

Areas to Watch

MGRC0 concerns · Avg: 0/10

No major concerns identified

URI4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-1.9%2/10

Earnings declined 1.9%

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 : 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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