Financial Analysis: McGrath RentCorp (NASDAQ:MGRC) versus Eshallgo (NASDAQ:EHGO)

Eshallgo (NASDAQ:EHGO) and McGrath RentCorp (NASDAQ:MGRC) are both business services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, earnings, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Eshallgo	N/A	N/A	N/A
McGrath RentCorp	25.44%	13.68%	6.16%

Analyst Ratings

This is a breakdown of current ratings for Eshallgo and McGrath RentCorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eshallgo	0	0	0	0	0.00
McGrath RentCorp	0	0	2	0	3.00

McGrath RentCorp has a consensus price target of $145.50, suggesting a potential upside of 16.40%. Given McGrath RentCorp’s stronger consensus rating and higher possible upside, analysts plainly believe McGrath RentCorp is more favorable than Eshallgo.

Valuation and Earnings

This table compares Eshallgo and McGrath RentCorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eshallgo	$16.96 million	1.42	$10,000.00	N/A	N/A
McGrath RentCorp	$910.94 million	3.37	$174.62 million	$9.43	13.26

McGrath RentCorp has higher revenue and earnings than Eshallgo.

Insider and Institutional Ownership

92.1% of McGrath RentCorp shares are owned by institutional investors. 1.6% of McGrath RentCorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

McGrath RentCorp beats Eshallgo on 11 of the 11 factors compared between the two stocks.

About Eshallgo

Eshallgo Inc., through its subsidiaries, engages in the sale and leasing of office equipment and after-sale maintenance and repair services in the People’s Republic of China. The company also sells office furniture, IT products, water dispensers, printing papers, and other products, as well as provides maintenance services with enterprise resource planning systems. It serves private and public sector businesses, as well as large enterprises and institutions. The company was founded in 2015 and is based in Shanghai, China.

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.