Aircastle (AYR) and Its Competitors Financial Contrast

Aircastle (NYSE: AYR) is one of 16 publicly-traded companies in the “Equipment rental & leasing, not elsewhere classified” industry, but how does it compare to its peers? We will compare Aircastle to related companies based on the strength of its valuation, institutional ownership, risk, dividends, analyst recommendations, earnings and profitability.

Valuation and Earnings

This table compares Aircastle and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Aircastle $796.62 million $147.87 million 10.54
Aircastle Competitors $1.49 billion $248.94 million -0.65

Aircastle’s peers have higher revenue and earnings than Aircastle. Aircastle is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Aircastle and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aircastle 18.56% 8.41% 2.18%
Aircastle Competitors 4.16% 3.47% -0.56%

Dividends

Aircastle pays an annual dividend of $1.12 per share and has a dividend yield of 5.7%. Aircastle pays out 59.9% of its earnings in the form of a dividend. As a group, “Equipment rental & leasing, not elsewhere classified” companies pay a dividend yield of 2.4% and pay out 34.1% of their earnings in the form of a dividend. Aircastle has increased its dividend for 7 consecutive years.

Volatility & Risk

Aircastle has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Aircastle’s peers have a beta of 1.87, suggesting that their average share price is 87% more volatile than the S&P 500.

Insider and Institutional Ownership

61.6% of Aircastle shares are held by institutional investors. Comparatively, 58.4% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by institutional investors. 1.8% of Aircastle shares are held by insiders. Comparatively, 14.1% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by 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.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Aircastle and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aircastle 0 9 1 0 2.10
Aircastle Competitors 82 400 633 50 2.56

Aircastle currently has a consensus target price of $24.67, suggesting a potential upside of 25.15%. As a group, “Equipment rental & leasing, not elsewhere classified” companies have a potential upside of 18.31%. Given Aircastle’s higher possible upside, equities research analysts plainly believe Aircastle is more favorable than its peers.

Summary

Aircastle peers beat Aircastle on 8 of the 15 factors compared.

Aircastle Company Profile

Aircastle Limited is a holding company. The Company, through its subsidiaries, acquires, leases and sells commercial jet aircrafts to airlines. The Company is engaged in financing and managing commercial flight equipment. The Company manages its aircrafts in the United States, Ireland and Singapore. As of December 31, 2016, the Company owned and managed on behalf of its joint ventures 206 aircrafts leased to 71 lessees located in 36 countries. The Company originates acquisitions and sales through relationships with airlines, other aircraft lessors, financial institutions and brokers, as well as other sources. As of February 7, 2017, the Company had lease commitments or letters of intent to lease or sell 16 aircrafts. The Company’s aircraft portfolio includes passenger wide-body, passenger narrow-body and freighter aircrafts. The Company’s portfolio spans across various regions, such as the Middle East and Africa, South America, North America, Asia and Pacific, and Europe.

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