Comparing AerCap (AER) and Its Competitors

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

Dividends

AerCap pays an annual dividend of $1.60 per share and has a dividend yield of 0.9%. 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 2.6% and pay out 34.6% of their earnings in the form of a dividend. AerCap has raised its dividend for 2 consecutive years.

Volatility and Risk

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for AerCap and its rivals, 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	1467	4919	6722	241	2.43

AerCap presently has a consensus target price of $185.88, indicating a potential upside of 6.17%. As a group, “Trading Companies & Distributors” companies have a potential upside of 9.49%. Given AerCap’s rivals higher possible upside, analysts clearly believe AerCap has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

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

Earnings & Valuation

This table compares AerCap and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AerCap	$8.52 billion	$3.75 billion	8.97
AerCap Competitors	$6.61 billion	$363.16 million	33.39

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

Profitability

This table compares AerCap and its rivals’ 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	1.07%	-34.33%	3.54%

Summary

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

AerCap Company Profile

AerCap Holdings N.V. is a global aviation leasing company headquartered in Dublin, Ireland, and listed on the New York Stock Exchange under the symbol AER. Through its subsidiaries, AerCap owns, manages and leases commercial aircraft, engines and helicopters to airlines and other aviation customers worldwide. The company provides operating leases, finance leases, aircraft trading and asset management services. Its fleet portfolio includes aircraft from major manufacturers such as Airbus and Boeing, as well as engines and helicopters.