Contrasting Custom Truck One Source (NYSE:CTOS) and AerCap (NYSE:AER)

AerCap (NYSE:AER) and Custom Truck One Source (NYSE:CTOS) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares AerCap and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerCap	34.47%	18.26%	4.70%
Custom Truck One Source	1.44%	3.63%	0.83%

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, Custom Truck One Source has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Institutional and Insider Ownership

96.4% of AerCap shares are held by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are held by institutional investors. 0.5% of AerCap shares are held by insiders. Comparatively, 4.7% of Custom Truck One Source shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for AerCap and Custom Truck One Source, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerCap	0	1	7	2	3.10
Custom Truck One Source	1	3	4	0	2.38

AerCap currently has a consensus target price of $185.88, suggesting a potential upside of 12.06%. Custom Truck One Source has a consensus target price of $12.00, suggesting a potential upside of 18.51%. Given Custom Truck One Source’s higher probable upside, analysts plainly believe Custom Truck One Source is more favorable than AerCap.

Valuation & Earnings

This table compares AerCap and Custom Truck One Source”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerCap	$8.52 billion	3.25	$3.75 billion	$19.51	8.50
Custom Truck One Source	$1.94 billion	1.18	-$31.05 million	$0.13	77.89

AerCap has higher revenue and earnings than Custom Truck One Source. AerCap is trading at a lower price-to-earnings ratio than Custom Truck One Source, indicating that it is currently the more affordable of the two stocks.

Summary

AerCap beats Custom Truck One Source on 11 of the 15 factors compared between the two stocks.

About AerCap

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.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.