Financial Contrast: McGrath RentCorp (NASDAQ:MGRC) and FTAI Aviation (NASDAQ:FTAIO)

McGrath RentCorp (NASDAQ:MGRC) and FTAI Aviation (NASDAQ:FTAIO) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for McGrath RentCorp and FTAI Aviation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McGrath RentCorp	0	0	1	0	3.00
FTAI Aviation	0	0	0	0	N/A

McGrath RentCorp presently has a consensus price target of $116.00, suggesting a potential upside of 9.92%. Given McGrath RentCorp’s higher possible upside, research analysts plainly believe McGrath RentCorp is more favorable than FTAI Aviation.

Valuation & Earnings

This table compares McGrath RentCorp and FTAI Aviation’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McGrath RentCorp	$865.53 million	2.99	$174.62 million	$5.13	20.53
FTAI Aviation	$1.37 billion	N/A	N/A	N/A	N/A

McGrath RentCorp has higher earnings, but lower revenue than FTAI Aviation.

Dividends

McGrath RentCorp pays an annual dividend of $1.90 per share and has a dividend yield of 1.8%. FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 7.8%. McGrath RentCorp pays out 37.0% of its earnings in the form of a dividend. McGrath RentCorp has raised its dividend for 32 consecutive years.

Insider and Institutional Ownership

92.1% of McGrath RentCorp shares are held by institutional investors. 1.6% of McGrath RentCorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares McGrath RentCorp and FTAI Aviation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McGrath RentCorp	13.39%	13.33%	5.58%
FTAI Aviation	N/A	N/A	N/A

Summary

McGrath RentCorp beats FTAI Aviation on 8 of the 11 factors compared between the two stocks.

About McGrath RentCorp

McGrath RentCorp operates as a business to business rental company in the United States and internationally. It rents and sells relocatable modular buildings, portable storage containers, and electronic test equipment. The company operates through four segments: Mobile Modular, Portable Storage, TRS-RenTelco, and Enviroplex. The Mobile Modular segment rents and sells modular buildings designed for use as classrooms, temporary offices adjacent to existing facilities, sales offices, construction field offices, restroom buildings, health care clinics, child care facilities, office spaces, and various other purposes. The TRS-RenTelco segment rents and sells general purpose electronic test equipment, such as oscilloscopes, amplifiers, analyzers, signal source, and power source test equipment primarily to aerospace, defense, electronics, industrial, research, and semiconductor industries. It also provides communications test equipment, including network and transmission test equipment for various fiber, copper, and wireless networks to the manufacturers of communications equipment and products, electrical and communications installation contractors, field technicians, and service providers. The Portable Storage segment offers steel containers to provide a temporary storage solution. The Enviroplex segment manufactures and sells portable classrooms directly to public school districts and other educational institutions in California. The company was incorporated in 1979 and is based in Livermore, California.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.