McGrath RentCorp or United Rentals: Which Stock Has More Upside?
Even as United Rentals fell -7.8% during the past Day, its peer McGrath RentCorp may be a better choice. Consistently evaluating alternatives is core to sound investment approach. McGrath RentCorp (MGRC) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs United Rentals (URI) stock, suggesting you may be better off investing in MGRC
- MGRC’s quarterly revenue growth was 10.8%, vs. URI’s 5.9%.
- In addition, its Last 12 Months revenue growth came in at 8.8%, ahead of URI’s 6.7%.
- MGRC’s LTM margin is higher: 25.5% vs. URI’s 25.1%.
Single stock can be risky, but there is a huge value to a broader diversified approach we take with Trefis High Quality Portfolio. Separately, consider what could long-term performance for your portfolio be if you combined 10% commodities, 10% gold, and 2% crypto with equities.
URI operates general and specialty equipment rentals, including trench safety products, through a network of 1,345 rental locations as of January 2022. MGRC rents and sells modular buildings, storage containers, test equipment, steel tanks for various liquids, and manufactures portable classrooms for educational institutions.
Valuation & Performance Overview
| URI | MGRC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 14.6 | 12.3 | MGRC |
| Revenue Growth | |||
| Last Quarter | 5.9% | 10.8% | MGRC |
| Last 12 Months | 6.7% | 8.8% | MGRC |
| Last 3 Year Average | 13.2% | 20.4% | MGRC |
| Operating Margins | |||
| Last 12 Months | 25.1% | 25.5% | MGRC |
| Last 3 Year Average | 26.5% | 24.5% | URI |
| Momentum | |||
| Last 3 Year Return | 230.9% | 46.9% | URI |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: URI Revenue Comparison | MGRC Revenue Comparison
See more margin details: URI Operating Income Comparison | MGRC Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell MGRC Stock to see if McGrath RentCorp’s edge holds up under the hood or if United Rentals still has cards to play (see Buy or Sell URI Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| URI Return | 39% | 43% | 7% | 64% | 24% | 42% | 506% | <=== | |
| MGRC Return | -10% | 22% | 26% | 24% | -5% | 9% | 76% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 15% | 106% | ||
| Monthly Win Rates [3] | |||||||||
| URI Win Rate | 67% | 58% | 50% | 58% | 67% | 67% | 61% | ||
| MGRC Win Rate | 58% | 75% | 58% | 67% | 42% | 44% | 57% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| URI Max Drawdown | -58% | -1% | -29% | -7% | -6% | -21% | -20% | ||
| MGRC Max Drawdown | -39% | -2% | -10% | -12% | -17% | -9% | -15% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/23/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read MGRC Dip Buyer Analyses and URI Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.