Head-To-Head Analysis: Finning International (OTCMKTS:FINGF) vs. Willis Lease Finance (NASDAQ:WLFC)

Willis Lease Finance (NASDAQ:WLFC) and Finning International (OTCMKTS:FINGF) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Insider & Institutional Ownership

93.7% of Willis Lease Finance shares are held by institutional investors. 53.3% of Willis Lease Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Willis Lease Finance pays an annual dividend of $0.53 per share and has a dividend yield of 0.9%. Finning International pays an annual dividend of $0.93 per share and has a dividend yield of 1.4%. Willis Lease Finance pays out 13.3% of its earnings in the form of a dividend. Finning International pays out 39.7% 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.

Profitability

This table compares Willis Lease Finance and Finning International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willis Lease Finance	11.80%	14.11%	2.64%
Finning International	4.93%	20.17%	7.06%

Valuation and Earnings

This table compares Willis Lease Finance and Finning International”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willis Lease Finance	$730.24 million	1.63	$113.76 million	$3.99	14.09
Finning International	$7.58 billion	1.14	$470.93 million	$2.34	28.27

Finning International has higher revenue and earnings than Willis Lease Finance. Willis Lease Finance is trading at a lower price-to-earnings ratio than Finning International, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Willis Lease Finance and Finning International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willis Lease Finance	0	1	0	1	3.00
Finning International	0	0	5	0	3.00

Willis Lease Finance currently has a consensus price target of $71.00, suggesting a potential upside of 26.29%. Given Willis Lease Finance’s higher possible upside, analysts clearly believe Willis Lease Finance is more favorable than Finning International.

Summary

Willis Lease Finance beats Finning International on 8 of the 15 factors compared between the two stocks.

About Willis Lease Finance

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.

About Finning International

Finning International Inc. sells, services, and rents heavy equipment, engines, and related products in Canada, Chile, Bolivia, the United Kingdom, Argentina, Ireland, and internationally. The company offers articulated trucks, asphalt pavers, backhoe loaders, cold planers, compactors, dozers, drills, electric rope shovels, excavators, hydraulic mining shovels, material handlers, motor graders, off-highway trucks, pipelayers, road reclaimers, skid steer and compact track loaders, track loaders, underground-hard rock, wheel loaders, and wheel tractor-scrapers, as well as mobile and stationary generator sets. It also provides blades, buckets – skid steer loaders, forks, hammers, augers, brooms, material handling, mulchers, grapples, couplers loaders, backhoes, buckets telehandlers, trenchers, stump grinders, multi-processors, buckets loaders, electric power controls, rakes, couplers excavators, bale grabs, cold planers, compactors, flail mowers, buckets mining shovels, pulverizers, nursery products, buckets compact wheels loaders, buckets backhoe rears, bale spears, tillers, shears, buckets backhoe fronts, tilt rotate systems, adapters, rippers, saws, snow products, and buckets excavators. In addition, it offers power systems for electric power generation, oil and gas, industrial, and marine power systems; and rents generators, power distribution products, and air compressors. Further, the company provides aftercare, fluid analysis, finning managed, financing, warranty, customer training solutions, as well as rebuilds, rentals, and repair services. It serves agriculture, construction, forestry, electric power generation, industrial and waste, industrial OEMs, marine, mining, oil and gas, paving, and quarrying industries. The company was formerly known as Finning Ltd. and changed its name to Finning International Inc. in April 1997. Finning International Inc. was incorporated in 1933 and is headquartered in Surrey, Canada.