AerCap (AER) vs. Its Competitors Head-To-Head Analysis

AerCap (NYSE:AER) is one of 157 public companies in the “Trading Companies & Distributors” industry, but how does it compare to its competitors? We will compare AerCap to related companies based on the strength of its risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Valuation and Earnings

This table compares AerCap and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AerCap	$8.52 billion	$3.75 billion	8.52
AerCap Competitors	$6.78 billion	$363.16 million	34.99

AerCap has higher revenue and earnings than its competitors. AerCap is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

96.4% of AerCap shares are held by institutional investors. Comparatively, 50.5% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 0.5% of AerCap shares are held by company insiders. Comparatively, 17.3% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AerCap and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerCap	0	1	7	2	3.10
AerCap Competitors	1462	4912	6707	239	2.43

AerCap currently has a consensus target price of $185.88, suggesting a potential upside of 11.78%. As a group, “Trading Companies & Distributors” companies have a potential upside of 12.23%. Given AerCap’s competitors higher probable upside, analysts clearly believe AerCap has less favorable growth aspects than its competitors.

Volatility & Risk

AerCap has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, AerCap’s competitors have a beta of 1.32, indicating that their average share price is 32% more volatile than the S&P 500.

Profitability

This table compares AerCap and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerCap	34.47%	18.26%	4.70%
AerCap Competitors	1.06%	-34.39%	3.54%

Dividends

AerCap pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. AerCap pays out 8.2% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.7% and pay out 34.8% of their earnings in the form of a dividend. AerCap has raised its dividend for 2 consecutive years.

Summary

AerCap beats its competitors on 10 of the 15 factors compared.

AerCap Company Profile

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft and engines; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. In addition, the company provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. Further, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. The company had a portfolio of owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.