Willis Lease Finance (NASDAQ:WLFC – Get Free Report) and Boise Cascade (NYSE:BCC – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.
Dividends
Willis Lease Finance pays an annual dividend of $0.53 per share and has a dividend yield of 1.0%. Boise Cascade pays an annual dividend of $0.88 per share and has a dividend yield of 1.1%. Willis Lease Finance pays out 13.3% of its earnings in the form of a dividend. Boise Cascade pays out 29.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Boise Cascade has increased its dividend for 6 consecutive years. Boise Cascade is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Willis Lease Finance has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, Boise Cascade has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Willis Lease Finance | $730.24 million | 1.55 | $113.76 million | $3.99 | 13.39 |
| Boise Cascade | $6.40 billion | 0.43 | $132.84 million | $2.95 | 26.62 |
Boise Cascade has higher revenue and earnings than Willis Lease Finance. Willis Lease Finance is trading at a lower price-to-earnings ratio than Boise Cascade, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.7% of Willis Lease Finance shares are held by institutional investors. Comparatively, 96.2% of Boise Cascade shares are held by institutional investors. 53.3% of Willis Lease Finance shares are held by company insiders. Comparatively, 1.4% of Boise Cascade shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Willis Lease Finance and Boise Cascade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Willis Lease Finance | 11.80% | 14.11% | 2.64% |
| Boise Cascade | 1.64% | 5.41% | 3.34% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Willis Lease Finance and Boise Cascade, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Willis Lease Finance | 0 | 1 | 0 | 1 | 3.00 |
| Boise Cascade | 1 | 3 | 3 | 0 | 2.29 |
Willis Lease Finance currently has a consensus price target of $71.00, indicating a potential upside of 32.91%. Boise Cascade has a consensus price target of $93.60, indicating a potential upside of 19.21%. Given Willis Lease Finance’s stronger consensus rating and higher probable upside, research analysts clearly believe Willis Lease Finance is more favorable than Boise Cascade.
About Willis Lease Finance
Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.
About Boise Cascade
Boise Cascade Company engages in manufacture of wood products and distribution of building materials in the United States and Canada. It operates through two segments, Wood Products and Building Materials Distribution. The Wood Products segment manufactures laminated veneer lumber and laminated beams used in headers and beams; I-joists for residential and commercial flooring and roofing systems, and other structural applications; structural, appearance, and industrial plywood panels; and ponderosa pine shop lumber and appearance grade boards. The Building Materials Distribution segment distributes a line of building materials, including oriented strand boards, plywood, and lumber; general line items, such as siding, composite decking, doors, metal products, insulation, and roofing; and engineered wood products. It markets and sells its products to dealers, home improvement centers, wholesalers, specialty distributors, and industrial converters for use in the construction of new residential housing, repair-and-remodeling of existing housing, construction of light industrial and commercial buildings, and other industrial applications. Boise Cascade Company was incorporated in 2004 and is headquartered in Boise, Idaho.
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