McGrath RentCorp ( NASDAQ:MGRC – Get Free Report ) and Reliance ( NYSE:RS – Get Free Report ) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.
Dividends McGrath RentCorp pays an annual dividend of $1.98 per share and has a dividend yield of 1.8%. Reliance pays an annual dividend of $5.00 per share and has a dividend yield of 1.3%. McGrath RentCorp pays out 31.9% of its earnings in the form of a dividend. Reliance pays out 29.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. McGrath RentCorp has raised its dividend for 33 consecutive years and Reliance has raised its dividend for 15 consecutive years. McGrath RentCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Get McGrath RentCorp alerts: Volatility & Risk McGrath RentCorp has a beta of 0.45, suggesting that its stock price is 55% less volatile than the...