AerSale (NASDAQ:ASLE) & CAE (NYSE:CAE) Head-To-Head Analysis

AerSale (NASDAQ:ASLE) and CAE (NYSE:CAE) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Institutional and Insider Ownership

69.5% of AerSale shares are owned by institutional investors. Comparatively, 67.4% of CAE shares are owned by institutional investors. 19.2% of AerSale shares are owned by insiders. Comparatively, 18.3% of CAE shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

AerSale has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500. Comparatively, CAE has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares AerSale and CAE”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	1.01	$5.85 million	$0.14	52.86
CAE	$3.28 billion	2.66	$291.29 million	$0.92	29.61

CAE has higher revenue and earnings than AerSale. CAE is trading at a lower price-to-earnings ratio than AerSale, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for AerSale and CAE, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	0	5	0	0	2.00
CAE	0	5	5	2	2.75

AerSale currently has a consensus price target of $7.00, indicating a potential downside of 5.41%. CAE has a consensus price target of $33.67, indicating a potential upside of 23.59%. Given CAE’s stronger consensus rating and higher possible upside, analysts clearly believe CAE is more favorable than AerSale.

Profitability

This table compares AerSale and CAE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerSale	1.86%	2.19%	1.52%
CAE	8.70%	7.92%	3.51%

Summary

CAE beats AerSale on 12 of the 15 factors compared between the two stocks.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.