MGRC vs WSC: Which Is the Better Buy in 2026?
Last updated November 2026
Short answer
MGRC and WSC are similarly sized, but WSC trades noticeably cheaper on forward earnings (15.21x vs 19.05x): the market is paying up for MGRC's profile and pricing WSC more conservatively, or for faster growth. Which you prefer comes down to the drivers you believe, and whether adding either over-concentrates what you already own.
MGRC vs WSC: the tie-breaker metrics
Same yardstick, side by side (as of November 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | MGRC | WSC | What it tells you |
|---|---|---|---|
| Market cap | $3.17B | $3.57B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 19.05 | 15.21 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Beta | 0.49 | 1.39 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 99% of range | 32% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 2.48 | 3.91 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Reading it: WSC is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.
Before you buy: how MGRC and WSC affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. MGRC and WSC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined MGRC and WSC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does McGrath RentCorp (MGRC) do?
McGrath RentCorp is a diversified business-to-business rental company founded in 1979 and based in Livermore, California. It operates through four segments: Mobile Modular (rentable modular buildings used as classrooms, offices, clinics, and construction field space), Portable Storage (steel storage containers and ground-level offices), TRS-RenTelco (rental of general-purpose electronic test equipment for aerospace, defense, and semiconductor customers), and Enviroplex (manufacturing of portable classrooms for schools). Rental operations, which generate recurring, higher-margin revenue, make up the large majority of the business, with equipment sales a smaller and more cyclical piece.
What does WillScot Holdings Corporation rents adaptable workspace and storage to businesses across the United States (WSC) do?
WillScot Holdings Corporation rents adaptable workspace and storage to businesses across the United States, Canada, and Mexico. Its Modular Solutions line covers mobile offices, ground-level offices, single-wide and sectional complexes (including the Redi-Plex and FLEX product families), classrooms, blast-resistant modules, and clearspan structures. Its Storage Solutions line covers portable steel containers and climate-controlled units. Roughly 96% of revenue comes from leasing and services rather than unit sales, and the company layers on value-added products and services (VAPS) such as furniture, steps, HVAC, connectivity, and damage waivers, which reached ~17.7% of total revenue in Q1 2026. WillScot holds roughly half the North American modular space rental market and about a quarter of portable storage, several times the size of the next competitor.
MGRC vs WSC: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- MGRC drivers: Recurring rental revenue base; Modular and storage demand.
- WSC drivers: Large projects: data centers, power, and manufacturing; The leasing inflection in the second half of 2026.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: MGRC's fortunes are linked to non-residential construction, state and local education budgets, and industrial and defense capital spending, all of which can soften in a downturn. For WSC, the core cyclical risk is unresolved: nonresidential construction starts by square footage were down roughly 6% year over year, the Architecture Billings Index has been contracting, and units on rent have been declining, so the second-half inflection is a forecast rather than a fact.
MGRC or WSC: which should you pick?
MGRC vs WSC: the full fundamentals
MGRC. Two straight quarters of slight EPS misses have kept the shares roughly flat over three months, and trailing growth looks weak because large modular and classroom sales slipped out of the second quarter. Consensus expects 2026 EPS of about $6.35, roughly level with 2025, and about $6.95 in 2027, so the stock trades near 16 times next year's earnings. The October 28, 2026 third-quarter report, with consensus near $1.85 per share, is where the delayed sales are supposed to show up.
WSC. WSC screens oddly on headline metrics: there is no meaningful trailing P/E because impairments, depreciation, and interest push GAAP net income negative, so the market values it on EBITDA, free cash flow, and forward earnings. After a 39% three-month slide, the forward P/E is about 12.5x on a roughly $2.9 billion market cap, well below the low-20s multiple of mid-2026, and the 10 covering analysts average a $27.30 target. Q3 2026 results are expected in early November, with consensus near $0.28 of EPS on about $586 million of revenue.
Headline figures (approximate, October 2026): MGRC shows revenue (ttm) ~$933M, down ~6% in the latest quarter, q2 2026 eps ~$1.32 vs ~$1.46 expected, net income (ttm) ~$153M, ~16% net margin, 2026 guidance Revenue and adj. EBITDA midpoints kept; capex raised to $200-220M; WSC shows revenue (ttm) ~$2.29B, q2 2026 revenue ~$612M (+3.9% YoY), net income (ttm) ~-$69M (EPS ~-$0.38), forward p/e ~12.5x.
The bottom line: MGRC vs WSC
MGRC and WSC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined MGRC and WSC exposure against your real portfolio. It is not an investment adviser.
Wondering how MGRC or WSC fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in McGrath RentCorp with AI
Connect the broker you already use and ask Walnut's AI how MGRC fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between MGRC and WSC?
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McGrath RentCorp is a diversified business-to-business rental company founded in 1979 and based in Livermore, California. WillScot Holdings Corporation rents adaptable workspace and storage to businesses across the United States, Canada, and Mexico. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is MGRC or WSC the better stock?
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Neither is universally better; they suit different views and risk levels. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, MGRC or WSC?
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On forward P/E (as of November 2026), MGRC trades at 19.05x and WSC at 15.21x, so WSC is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both MGRC and WSC?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of MGRC vs WSC?
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MGRC: MGRC's fortunes are linked to non-residential construction, state and local education budgets, and industrial and defense capital spending, all of which can soften in a downturn. Recent results have shown margin pressure and lumpier equipment sales: second-quarter 2026 revenue fell about 6% and EPS of $1.32 missed the $1.46 estimate, with portable storage EBITDA down about 23%. Management called the shortfall a matter of timing, so the second half has to deliver the sales that slipped. The largest competitor, WillScot Mobile Mini, is far bigger and can pressure pricing and share. The terminated WillScot merger removed a potential premium event and returned the company to standalone execution. Higher capital spending to grow the test-equipment fleet holds down free cash flow, which was about $68 million over the past year, and cash on hand is minimal against roughly $590 million of debt. As a slow-growth name, the stock offers limited upside if the market rotates toward faster-growing businesses. WSC: The core cyclical risk is unresolved: nonresidential construction starts by square footage were down roughly 6% year over year, the Architecture Billings Index has been contracting, and units on rent have been declining, so the second-half inflection is a forecast rather than a fact. Leverage near 3.7x on roughly $3.8 billion of debt amplifies any EBITDA shortfall and keeps interest expense heavy enough that GAAP earnings have been negative even in a ~40% EBITDA margin business. The traditional portable storage segment is lagging modular in recovery and carries a ~$50 million year-over-year revenue headwind, and pricing pressure in ground-level offices shows rate is not uniformly defensible. Margin compressed to ~38.5% in Q1 2026 from ~40.9% as rental costs rose 9% and commissions rose 33%, and management frames those as transitional rather than structural, which is a claim yet to be proven. The share price is its own signal: WSC fell about 39% in the three months to October 16, 2026 even after a Q2 beat, which suggests the market doubts the durability of the recovery. Finally, growth concentrated in data centers, power, and one-off events (including 2026 World Cup activity) introduces lumpiness, and the abandoned $3.8 billion McGrath RentCorp combination (terminated in September 2024 with a $180 million break fee after FTC opposition) is a reminder that large consolidation is likely closed off to the market leader.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell MGRC or WSC; figures are approximate and dated (as of November 2026). Verify current data before investing.