Air Lease vs AerCap Which Is More Lucrative?

Air Lease Corporation and AerCap Holdings are two major players in the aircraft leasing industry. Air Lease focuses on leasing commercial aircraft to airlines worldwide, while AerCap is one of the largest aircraft lessors in the world, with a diverse portfolio of aircraft serving over 200 customers in approximately 80 countries. Both companies have seen significant growth in recent years due to the increasing demand for air travel. Investors looking to capitalize on the aviation industry may consider investing in these two stocks for long-term growth potential.

Air Lease or AerCap?

When comparing Air Lease and AerCap, 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 Air Lease and AerCap.

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. Air Lease has a dividend yield of 2.17%, while AerCap has a dividend yield of 0.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Air Lease reports a 5-year dividend growth of 13.50% year and a payout ratio of 19.62%. On the other hand, AerCap reports a 5-year dividend growth of 0.00% year and a payout ratio of 3.58%.

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 Air Lease P/E ratio at 10.29 and AerCap's P/E ratio at 7.22. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Air Lease P/B ratio is 0.70 while AerCap's P/B ratio is 1.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Air Lease has seen a 5-year revenue growth of 0.60%, while AerCap's is -0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Air Lease's ROE at 7.13% and AerCap's ROE at 15.05%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $47.32 for Air Lease and $97.41 for AerCap. Over the past year, Air Lease's prices ranged from $36.58 to $52.31, with a yearly change of 43.00%. AerCap's prices fluctuated between $66.06 and $99.68, with a yearly change of 50.89%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.