Analyzing MITCHAM INDUSTR/SH (MIND) and Aircastle (AYR)

Aircastle (NYSE:AYR) and MITCHAM INDUSTR/SH (NASDAQ:MIND) are both small-cap transportation companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

Aircastle has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, MITCHAM INDUSTR/SH has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Aircastle and MITCHAM INDUSTR/SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aircastle 0 5 2 0 2.29
MITCHAM INDUSTR/SH 0 0 0 0 N/A

Aircastle presently has a consensus target price of $24.60, suggesting a potential upside of 23.68%. Given Aircastle’s higher possible upside, research analysts clearly believe Aircastle is more favorable than MITCHAM INDUSTR/SH.

Insider and Institutional Ownership

57.8% of Aircastle shares are held by institutional investors. Comparatively, 72.1% of MITCHAM INDUSTR/SH shares are held by institutional investors. 1.8% of Aircastle shares are held by company insiders. Comparatively, 9.8% of MITCHAM INDUSTR/SH shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Aircastle and MITCHAM INDUSTR/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aircastle 25.70% 10.26% 2.72%
MITCHAM INDUSTR/SH -67.30% -39.33% -27.84%

Dividends

Aircastle pays an annual dividend of $1.12 per share and has a dividend yield of 5.6%. MITCHAM INDUSTR/SH does not pay a dividend. Aircastle pays out 59.9% of its earnings in the form of a dividend. Aircastle has raised its dividend for 7 consecutive years.

Valuation & Earnings

This table compares Aircastle and MITCHAM INDUSTR/SH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aircastle $796.62 million 1.90 $147.87 million $1.87 10.64
MITCHAM INDUSTR/SH $48.28 million 0.98 -$21.06 million N/A N/A

Aircastle has higher revenue and earnings than MITCHAM INDUSTR/SH.

Summary

Aircastle beats MITCHAM INDUSTR/SH on 11 of the 14 factors compared between the two stocks.

Aircastle Company Profile

Aircastle Limited, through its subsidiaries, leases, finances, sells, and manages commercial flight equipment to airlines worldwide. The company also invests in other aviation assets. As of December 31, 2017, its aircraft portfolio comprised 236 aircraft leased to 81 lessees located in 43 countries. Aircastle Limited was founded in 2004 and is based in Stamford, Connecticut.

MITCHAM INDUSTR/SH Company Profile

Mitcham Industries, Inc., through its subsidiaries, provides technology to the oceanographic, hydrographic, defense, seismic and maritime security industries worldwide. The company operates in two segments, Marine Technology Products, and Equipment Leasing. The Marine Technology Products segment develops, manufactures, and sells proprietary products. Its products include GunLink seismic source acquisition and control systems that provide operators of marine seismic surveys with precise monitoring and control of energy sources; BuoyLink RGPS tracking systems, which are used to offer precise positioning of marine seismic energy sources and streamers; Digishot energy source controllers; Sleeve Gun energy sources; and SeaLink product line of marine sensors and solid streamer systems. This segment also provides streamer weight collars, depth and pressure transducers, air control valves, and source array systems; spare and replacement parts; repair services, engineering services, training, field service operations, and umbilical termination; and equipment, consumables, systems integration, engineering hardware, and software maintenance support services. The Equipment Leasing segment leases seismic equipment for short-term primarily to seismic data acquisition contractors and oil field service providers. This segment is also involved in the sale of other seismic equipment of other manufacturers; and used equipment from its lease pool. Mitcham Industries, Inc. was founded in 1987 and is headquartered in Huntsville, Texas.

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