The Misfits: McGrath RentCorp (MGRC)
This rental business is proof-positive that corporate governance is a strength investors often under appreciate.
McGrath RentCorp’s (NASDAQ: MGRC) investor relations team is doing this company a disservice. In a world where Wall Street analysts and investors gobble up anything with the term “as-a-service” as part of its business description, how has the IR team not labeled McGrath as a BaaS (Buildings-as-a-Service) company?
I guess you don’t have to pander to Wall Street when your company has generated 10x the total returns of the S&P 500 since going public in 1985.
The business itself isn’t the most spectacular. I would argue, however, that what it lacks in business description, it more than makes up for in outstanding corporate governance. As the return chart shows, it has been a winning formula for nearly 40 years.
Let’s dig into this unique rental business and what makes the company’s governance a standout factor for investors.
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