HERC HOLDINGS INC. vs McGRATH RENTCORP, two Equipment Rental stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Two rental specialists sit side by side here: Herc rents construction and industrial equipment, McGrath rents modular buildings and test instruments. McGrath had the steadier year, earning 12.54% on equity at a 16.38% net margin and trading at 19.58 times earnings. Herc came in near breakeven, a negative 0.26% return that leaves no usable earnings multiple, though it trades at 2.66 times book to McGrath's 2.46. Herc converts far more cash, a 20.36% free-cash yield to McGrath's 6.44%, but carries 4.19 turns of debt where McGrath carries none. Herc pays 1.85% in dividends, McGrath 1.57%. At $5.0B Herc tops McGrath's $3.0B.
Comparison updated 2026-07-11.
| Metric | HRI | MGRC |
|---|---|---|
| Price | $149.31 | $116.95 |
| Market cap | $5.0B | $2.9B |
| Sector | Equipment Rental | Equipment Rental |
| Stage | Growth | Mature |
| Implied growth (priced in) | — | +0.5% |
| P/E | — | 18.6 |
| P/B | 2.62 | 2.33 |
| P/S | 1.07 | 3.04 |
| EV/EBITDA | — | 10.7 |
| Revenue growth | +28.2% | +3.5% |
| Gross margin | — | 48.8% |
| Operating margin | — | 21.9% |
| Net margin | -0.1% | 16.4% |
| Return on equity | -0.3% | 12.5% |
| Return on assets | -0.0% | 6.5% |
| Return on invested capital | — | 14.3% |
| FCF yield | 20.6% | 6.8% |
| Dividend yield | 1.9% | 1.7% |
| Debt / equity | 4.19 | 0.00 |
| Current ratio | 1.46 | — |
| Altman Z (solvency) | 0.68 | 2.63 |
| Piotroski F (quality) | 5 / 9 | 6 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.