Analyzing McGrath RentCorp (NASDAQ:MGRC) & FTAI Aviation (NASDAQ:FTAIN)

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

Earnings & Valuation

This table compares FTAI Aviation and McGrath RentCorp’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Aviation	$1.37 billion	N/A	N/A	N/A	N/A
McGrath RentCorp	$865.53 million	3.00	$174.62 million	$5.13	20.60

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for FTAI Aviation and McGrath RentCorp, as provided by MarketBeat.com.

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

McGrath RentCorp has a consensus target price of $116.00, indicating a potential upside of 9.74%. Given McGrath RentCorp’s higher possible upside, analysts plainly believe McGrath RentCorp is more favorable than FTAI Aviation.

Insider & Institutional Ownership

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

Profitability

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

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

Dividends

FTAI Aviation pays an annual dividend of $2.06 per share and has a dividend yield of 8.2%. McGrath RentCorp pays an annual dividend of $1.90 per share and has a dividend yield of 1.8%. McGrath RentCorp pays out 37.0% of its earnings in the form of a dividend. McGrath RentCorp has increased its dividend for 32 consecutive years.

Summary

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

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.

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.