McGrath RentCorp (NASDAQ:MGRC) versus SiteOne Landscape Supply (NYSE:SITE) Head-To-Head Analysis

McGrath RentCorp (NASDAQ:MGRC) and SiteOne Landscape Supply (NYSE:SITE) are both mid-cap industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations for McGrath RentCorp and SiteOne Landscape Supply, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
McGrath RentCorp	0	2	1	0	2.33
SiteOne Landscape Supply	1	7	5	0	2.31

McGrath RentCorp currently has a consensus price target of $140.00, suggesting a potential upside of 18.36%. SiteOne Landscape Supply has a consensus price target of $123.00, suggesting a potential upside of 11.22%. Given McGrath RentCorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe McGrath RentCorp is more favorable than SiteOne Landscape Supply.

Profitability

This table compares McGrath RentCorp and SiteOne Landscape Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
McGrath RentCorp	16.75%	12.75%	6.49%
SiteOne Landscape Supply	3.49%	10.06%	4.92%

Valuation & Earnings

This table compares McGrath RentCorp and SiteOne Landscape Supply”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McGrath RentCorp	$944.23 million	3.05	$156.31 million	$6.49	18.22
SiteOne Landscape Supply	$4.70 billion	1.01	$155.40 million	$3.80	29.10

McGrath RentCorp has higher earnings, but lower revenue than SiteOne Landscape Supply. McGrath RentCorp is trading at a lower price-to-earnings ratio than SiteOne Landscape Supply, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

92.0% of McGrath RentCorp shares are owned by institutional investors. 1.4% of McGrath RentCorp shares are owned by insiders. Comparatively, 2.1% of SiteOne Landscape Supply shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

McGrath RentCorp has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Summary

McGrath RentCorp beats SiteOne Landscape Supply on 9 of the 14 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 SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.