Comparing Air Lease (AL) and Its Peers

Air Lease (NYSE:AL) is one of 14 public companies in the “TRANS – EQP&LSNG” industry, but how does it contrast to its competitors? We will compare Air Lease to similar businesses based on the strength of its institutional ownership, dividends, profitability, analyst recommendations, valuation, risk and earnings.

Dividends

Air Lease pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. Air Lease pays out 9.5% of its earnings in the form of a dividend. As a group, “TRANS – EQP&LSNG” companies pay a dividend yield of 1.3% and pay out 21.0% of their earnings in the form of a dividend. Air Lease has raised its dividend for 13 consecutive years. Air Lease is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

94.6% of Air Lease shares are owned by institutional investors. Comparatively, 86.4% of shares of all “TRANS – EQP&LSNG” companies are owned by institutional investors. 6.6% of Air Lease shares are owned by insiders. Comparatively, 10.3% of shares of all “TRANS – EQP&LSNG” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Air Lease and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Lease	0	3	2	1	2.67
Air Lease Competitors	143	628	1070	67	2.56

Air Lease presently has a consensus target price of $66.00, indicating a potential upside of 1.54%. As a group, “TRANS – EQP&LSNG” companies have a potential upside of 6.73%. Given Air Lease’s competitors higher probable upside, analysts clearly believe Air Lease has less favorable growth aspects than its competitors.

Profitability

This table compares Air Lease and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air Lease	35.72%	8.54%	2.13%
Air Lease Competitors	1.03%	10.85%	1.92%

Volatility and Risk

Air Lease has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, Air Lease’s competitors have a beta of 1.48, meaning that their average stock price is 48% more volatile than the S&P 500.

Earnings & Valuation

This table compares Air Lease and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air Lease	$3.02 billion	$1.09 billion	6.98
Air Lease Competitors	$3.84 billion	$571.05 million	-35.98

Air Lease’s competitors have higher revenue, but lower earnings than Air Lease. Air Lease 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.

Summary

Air Lease beats its competitors on 9 of the 15 factors compared.

Air Lease Company Profile

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet aircraft to airlines worldwide. It sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors. The company provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2023, it owned a fleet of 463 aircraft, including 345 narrowbody aircraft and 118 widebody aircraft. Air Lease Corporation was incorporated in 2010 and is headquartered in Los Angeles, California.