McGrath RentCorp (NASDAQ:MGRC) and Eshallgo (NASDAQ:EHGO) Critical Contrast

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

Analyst Recommendations

This is a summary of current recommendations and price targets for McGrath RentCorp and Eshallgo, as provided by MarketBeat.com.

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

McGrath RentCorp currently has a consensus price target of $145.50, indicating a potential upside of 21.59%. Given McGrath RentCorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe McGrath RentCorp is more favorable 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 hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
McGrath RentCorp	$910.94 million	3.22	$174.62 million	$9.43	12.69
Eshallgo	$16.96 million	1.43	$10,000.00	N/A	N/A

McGrath RentCorp has higher revenue and earnings than Eshallgo.

Profitability

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

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

Summary

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

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.

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.