AerCap (NYSE:AER – Get Free Report) is one of 158 public companies in the “Trading Companies & Distributors” industry, but how does it contrast to its peers? We will compare AerCap to similar businesses based on the strength of its institutional ownership, valuation, profitability, dividends, earnings, risk and analyst recommendations.
Volatility and Risk
AerCap has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, AerCap’s peers have a beta of 1.28, meaning that their average share price is 28% more volatile than the S&P 500.
Profitability
This table compares AerCap and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AerCap | 34.47% | 18.33% | 4.72% |
| AerCap Competitors | 1.15% | -33.26% | 3.54% |
Valuation & Earnings
This table compares AerCap and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| AerCap | $8.52 billion | $3.75 billion | 8.39 |
| AerCap Competitors | $6.75 billion | $360.25 million | 33.21 |
AerCap has higher revenue and earnings than its peers. AerCap is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Dividends
AerCap pays an annual dividend of $1.60 per share and has a dividend yield of 1.0%. AerCap pays out 8.2% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.6% and pay out 34.8% of their earnings in the form of a dividend. AerCap has raised its dividend for 2 consecutive years.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for AerCap and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AerCap | 0 | 2 | 8 | 1 | 2.91 |
| AerCap Competitors | 1464 | 4954 | 6821 | 238 | 2.43 |
AerCap presently has a consensus price target of $181.89, indicating a potential upside of 11.15%. As a group, “Trading Companies & Distributors” companies have a potential upside of 8.29%. Given AerCap’s stronger consensus rating and higher probable upside, analysts plainly believe AerCap is more favorable than its peers.
Institutional & Insider Ownership
96.4% of AerCap shares are owned by institutional investors. Comparatively, 51.1% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 0.5% of AerCap shares are owned by company insiders. Comparatively, 17.1% of shares of all “Trading Companies & Distributors” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
AerCap beats its peers on 11 of the 15 factors compared.
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.
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