FTAI Aviation (FTAI) versus Its Competitors Critical Analysis

FTAI Aviation (NASDAQ:FTAI) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare FTAI Aviation to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, valuation, dividends, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FTAI Aviation	15.46%	132.04%	11.63%
FTAI Aviation Competitors	-278.26%	-46.47%	-4.05%

Earnings & Valuation

This table compares FTAI Aviation and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FTAI Aviation	$3.42 billion	$501.06 million	36.49
FTAI Aviation Competitors	$8.43 billion	$569.54 million	24.96

FTAI Aviation’s competitors have higher revenue and earnings than FTAI Aviation. FTAI Aviation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

FTAI Aviation has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, FTAI Aviation’s competitors have a beta of 1.32, meaning that their average stock price is 32% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for FTAI Aviation and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	8	0	2.80
FTAI Aviation Competitors	2152	8246	12738	579	2.50

FTAI Aviation presently has a consensus target price of $304.38, suggesting a potential upside of 69.18%. As a group, “Aerospace & Defense” companies have a potential upside of 28.08%. Given FTAI Aviation’s stronger consensus rating and higher possible upside, research analysts clearly believe FTAI Aviation is more favorable than its competitors.

Insider and Institutional Ownership

89.0% of FTAI Aviation shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.4% of FTAI Aviation shares are owned by insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. FTAI Aviation pays out 40.6% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.2% of their earnings in the form of a dividend. FTAI Aviation lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

FTAI Aviation beats its competitors on 9 of the 15 factors compared.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.