STRR vs MGRC

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

7% revenue growth year-over-year, versus -66. 9% for Star Equity Holdings, Inc. (STRR). 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.

Over the past 5 years, McGrath RentCorp (MGRC) delivered a total return of +49.

0%, compared to -50. 1% for Star Equity Holdings, Inc. (STRR). Over 10 years, the gap is even starker: MGRC returned +401. 5% versus STRR's +50. 6%. 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), Star Equity Holdings, Inc.

(STRR) is the lower-risk stock at 0. 19β versus McGrath RentCorp's 0. 87β — meaning MGRC is approximately 353% more volatile than STRR relative to the S&P 500. On balance sheet safety, Star Equity Holdings, Inc. (STRR) carries a lower debt/equity ratio of 3% 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 -66. 9% for Star Equity Holdings, Inc. (STRR). On earnings-per-share growth, the picture is similar: McGrath RentCorp grew EPS -32. 7% year-over-year, compared to -257. 7% for Star Equity Holdings, Inc.. 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 -19. 6% for Star Equity Holdings, 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 -15. 8% for STRR. 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.

All stocks in this comparison pay dividends.

Star Equity Holdings, Inc. (STRR) offers the highest yield at 7. 0%, versus 1. 7% for McGrath RentCorp (MGRC).

For long-horizon retirement investors, Star Equity Holdings, Inc.

(STRR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 19), 7. 0% yield). Both have compounded well over 10 years (STRR: +50. 6%, 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.

These companies operate in different sectors (STRR (Healthcare) and MGRC (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: STRR is a small-cap income-oriented stock; MGRC is a small-cap quality compounder stock. 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.