AerCap vs Air Lease Which Is More Reliable?

AerCap and Air Lease are both leading aircraft leasing companies in the aviation industry, providing a range of services to airlines worldwide. AerCap has a larger fleet size and market capitalization compared to Air Lease, potentially indicating a stronger financial position. However, Air Lease has shown steady growth and profitability in recent years, making it a formidable competitor. Investors may consider factors such as fleet composition, lease rates, and geographic diversification when evaluating the investment potential of these two stocks.

AerCap or Air Lease?

When comparing AerCap and Air Lease, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between AerCap and Air Lease.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. AerCap has a dividend yield of 0.79%, while Air Lease has a dividend yield of 2.15%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. AerCap reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.54%. On the other hand, Air Lease reports a 5-year dividend growth of 13.50% year and a payout ratio of 25.75%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with AerCap P/E ratio at 7.03 and Air Lease's P/E ratio at 10.26. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. AerCap P/B ratio is 1.06 while Air Lease's P/B ratio is 0.72.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, AerCap has seen a 5-year revenue growth of 0.02%, while Air Lease's is 0.60%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with AerCap's ROE at 15.05% and Air Lease's ROE at 7.30%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $94.94 for AerCap and $49.26 for Air Lease. Over the past year, AerCap's prices ranged from $70.48 to $100.81, with a yearly change of 43.03%. Air Lease's prices fluctuated between $39.15 and $52.31, with a yearly change of 33.61%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.