Elbit Systems (NASDAQ:ESLT – Get Free Report) and AerSale (NASDAQ:ASLE – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Volatility & Risk
Elbit Systems has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, AerSale has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.
Insider & Institutional Ownership
17.9% of Elbit Systems shares are held by institutional investors. Comparatively, 69.5% of AerSale shares are held by institutional investors. 0.8% of Elbit Systems shares are held by insiders. Comparatively, 20.1% of AerSale shares are held by 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.
Valuation and Earnings
This table compares Elbit Systems and AerSale”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elbit Systems | $8.55 billion | 4.11 | $589.90 million | $13.27 | 59.53 |
| AerSale | $303.67 million | 0.74 | -$3.82 million | ($0.08) | -59.00 |
Elbit Systems has higher revenue and earnings than AerSale. AerSale is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Elbit Systems and AerSale’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elbit Systems | N/A | N/A | N/A |
| AerSale | N/A | N/A | N/A |
Analyst Ratings
This is a summary of recent recommendations and price targets for Elbit Systems and AerSale, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elbit Systems | 0 | 5 | 0 | 0 | 2.00 |
| AerSale | 1 | 4 | 0 | 0 | 1.80 |
Elbit Systems presently has a consensus price target of $841.67, suggesting a potential upside of 6.54%. AerSale has a consensus price target of $6.83, suggesting a potential upside of 44.77%. Given AerSale’s higher possible upside, analysts plainly believe AerSale is more favorable than Elbit Systems.
Summary
Elbit Systems beats AerSale on 6 of the 10 factors compared between the two stocks.
About Elbit Systems
Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.
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.
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