MGRC vs RSG

For growth investors, McGrath RentCorp (MGRC) is the stronger pick with 3.

7% revenue growth year-over-year, versus 3. 5% for Republic Services, Inc. (RSG). McGrath RentCorp (MGRC) offers the better valuation at 18. 0x trailing P/E (17. 7x forward), making it the more compelling value choice. Analysts rate McGrath RentCorp (MGRC) a "Buy" — based on 5 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, McGrath RentCorp (MGRC) is the cheapest at 18.

0x versus Republic Services, Inc. at 29. 4x. On forward P/E, McGrath RentCorp is actually cheaper at 17. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Republic Services, Inc. wins at 1. 56x versus McGrath RentCorp's 2. 00x — a reasonable growth-adjusted valuation.

Over the past 5 years, Republic Services, Inc.

(RSG) delivered a total return of +91. 4%, compared to +49. 0% for McGrath RentCorp (MGRC). Over 10 years, the gap is even starker: MGRC returned +401. 5% versus RSG's +353. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Republic Services, Inc.

(RSG) is the lower-risk stock at -0. 15β versus McGrath RentCorp's 0. 87β — meaning MGRC is approximately -680% more volatile than RSG relative to the S&P 500. On balance sheet safety, Republic Services, Inc. (RSG) carries a lower debt/equity ratio of 5% versus 43% for McGrath RentCorp — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), McGrath RentCorp (MGRC) is pulling ahead at 3.

7% versus 3. 5% for Republic Services, Inc. (RSG). On earnings-per-share growth, the picture is similar: Republic Services, Inc. grew EPS 5. 5% year-over-year, compared to -32. 7% for McGrath RentCorp. Over a 3-year CAGR, MGRC leads at 14. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

McGrath RentCorp (MGRC) is the more profitable company, earning 16.

6% net margin versus 12. 9% for Republic Services, Inc. — meaning it keeps 16. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MGRC leads at 25. 9% versus 20. 0% for RSG. At the gross margin level — before operating expenses — MGRC leads at 46. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Republic Services, Inc. (RSG) is the more undervalued stock at a PEG of 1. 56x versus McGrath RentCorp's 2. 00x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, McGrath RentCorp (MGRC) trades at 17. 7x forward P/E versus 27. 8x for Republic Services, Inc. — 10. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MGRC: 22. 5% to $140. 00.

All stocks in this comparison pay dividends.

McGrath RentCorp (MGRC) offers the highest yield at 1. 7%, versus 1. 2% for Republic Services, Inc. (RSG).

For long-horizon retirement investors, Republic Services, Inc.

(RSG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0. 15), 1. 2% yield, +353. 8% 10Y return). Both have compounded well over 10 years (RSG: +353. 8%, MGRC: +401. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.