Between McGrath RentCorp and United Rentals, Which Stock Looks Set to Break Out?
United Rentals fell -5.5% during the past Day. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer McGrath RentCorp gives you more. 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 5.3%, vs. URI’s 2.8%.
- In addition, its Last 3-Year Average revenue growth came in at 14.7%, ahead of URI’s 11.7%.
- MGRC’s LTM margin is higher: 25.8% vs. URI’s 24.7%.
These differences become even clearer when you look at the financials side by side. The table highlights how URI’s fundamentals stack up against those of MGRC on growth, margins, momentum, and valuation multiples.
Valuation & Performance Overview
| URI | MGRC | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 12.4 | 10.5 | MGRC |
| Revenue Growth | |||
| Last Quarter | 2.8% | 5.3% | MGRC |
| Last 12 Months | 4.9% | 3.7% | URI |
| Last 3 Year Average | 11.7% | 14.7% | MGRC |
| Operating Margins | |||
| Last 12 Months | 24.7% | 25.8% | MGRC |
| Last 3 Year Average | 26.0% | 25.1% | URI |
| Momentum | |||
| Last 3 Year Return | 86.4% | 14.3% | 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
See detailed fundamentals on Buy or Sell MGRC Stock and Buy or Sell URI Stock. Below we compare market return and related metrics across years.
Historical Market Performance
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| URI Return | 43% | 7% | 64% | 24% | 16% | 2% | 266% | <=== | |
| MGRC Return | 22% | 26% | 24% | -5% | -5% | 1% | 74% | ||
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -1% | 81% | ||
| Monthly Win Rates [3] | |||||||||
| URI Win Rate | 58% | 50% | 58% | 67% | 50% | 33% | 53% | ||
| MGRC Win Rate | 75% | 58% | 67% | 42% | 42% | 33% | 53% | ||
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | 60% | <=== | |
| Max Drawdowns [4] | |||||||||
| URI Max Drawdown | -1% | -29% | -7% | -6% | -21% | -4% | -11% | ||
| MGRC Max Drawdown | -2% | -10% | -12% | -17% | -13% | 0% | -9% | ||
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -2% | -8% | <=== | |
[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 3/10/2026 (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.
Still not sure about URI or MGRC? Consider portfolio approach.
Smart Investing Begins With Portfolios
Individual stocks are unpredictable. A smart portfolio helps you invest, limits downside shocks, and provides upside exposure.
Why settle for average market returns? The Trefis High Quality (HQ) Portfolio invests in a diverse group of 30 stocks that have collectively delivered stronger upside with reduced volatility compared to the broader indices. Discover the methodology behind these smoother, higher returns by checking the HQ Portfolio performance data.