MGRC vs URI vs KFRC vs TREX

For growth investors, United Rentals, Inc.

(URI) is the stronger pick with 4. 9% revenue growth year-over-year, versus -5. 4% for Kforce Inc. (KFRC). 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 United Rentals, Inc. at 24. 5x. 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: United Rentals, Inc. wins at 0. 78x versus Trex Company, Inc. 's 7. 16x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, United Rentals, Inc.

(URI) delivered a total return of +178. 0%, compared to -64. 0% for Trex Company, Inc. (TREX). Over 10 years, the gap is even starker: URI returned +1483% versus KFRC's +195. 5%. 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), Kforce Inc.

(KFRC) is the lower-risk stock at 0. 53β versus Trex Company, Inc. 's 1. 47β — meaning TREX is approximately 178% more volatile than KFRC relative to the S&P 500. On balance sheet safety, Trex Company, Inc. (TREX) carries a lower debt/equity ratio of 22% versus 184% for United Rentals, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), United Rentals, Inc.

(URI) is pulling ahead at 4. 9% versus -5. 4% for Kforce Inc. (KFRC). On earnings-per-share growth, the picture is similar: United Rentals, Inc. grew EPS -0. 2% 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 2. 6% for Kforce 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 3. 8% for KFRC. 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, United Rentals, Inc. (URI) is the more undervalued stock at a PEG of 0. 78x versus Trex Company, Inc. 's 7. 16x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, McGrath RentCorp (MGRC) trades at 17. 7x forward P/E versus 24. 0x for Trex Company, Inc. — 6. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KFRC: 64. 3% to $71. 00.

In this comparison, KFRC (3.

6% yield), MGRC (1. 7% yield), URI (0. 8% yield) pay a dividend. TREX does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, United Rentals, Inc.

(URI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 19), 0. 8% yield, +1483% 10Y return). Both have compounded well over 10 years (URI: +1483%, TREX: +239. 9%), 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.

In terms of investment character: MGRC is a small-cap quality compounder stock; URI is a mid-cap quality compounder stock; KFRC is a small-cap income-oriented stock; TREX is a small-cap quality compounder stock. MGRC, URI, KFRC pay a dividend while TREX does not, making them suitable for different income and tax situations. 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.