Fly Leasing Limited (FLY) & Aercap Holdings N.V. (AER) Financial Survey

Fly Leasing Limited (NYSE: FLY) and Aercap Holdings N.V. (NYSE:AER) are both transportation companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fly Leasing Limited and Aercap Holdings N.V., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fly Leasing Limited 0 1 3 0 2.75
Aercap Holdings N.V. 0 1 9 0 2.90

Fly Leasing Limited currently has a consensus target price of $17.38, indicating a potential upside of 32.33%. Aercap Holdings N.V. has a consensus target price of $57.80, indicating a potential upside of 20.52%. Given Fly Leasing Limited’s higher probable upside, equities analysts plainly believe Fly Leasing Limited is more favorable than Aercap Holdings N.V..

Insider and Institutional Ownership

50.5% of Fly Leasing Limited shares are held by institutional investors. Comparatively, 89.9% of Aercap Holdings N.V. shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Fly Leasing Limited and Aercap Holdings N.V.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fly Leasing Limited $342.47 million 1.16 -$31.08 million ($1.03) -12.75
Aercap Holdings N.V. $4.99 billion 1.54 $2.39 billion $6.38 7.52

Aercap Holdings N.V. has higher revenue and earnings than Fly Leasing Limited. Fly Leasing Limited is trading at a lower price-to-earnings ratio than Aercap Holdings N.V., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Fly Leasing Limited has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Aercap Holdings N.V. has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Profitability

This table compares Fly Leasing Limited and Aercap Holdings N.V.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fly Leasing Limited -9.68% 11.37% 1.98%
Aercap Holdings N.V. 22.26% 14.43% 2.97%

Summary

Aercap Holdings N.V. beats Fly Leasing Limited on 11 of the 12 factors compared between the two stocks.

Fly Leasing Limited Company Profile

Fly Leasing Limited is engaged in purchasing commercial aircraft, which it leases under multi-year contracts to a range of airlines throughout the world. The Company primarily acquires aircraft by entering into purchase and leaseback transactions with airlines for new aircraft; purchasing portfolios, which consists of aircraft of various types and ages, and acquiring individual aircraft. As of December 31, 2016, the Company had 76 aircraft in its portfolio, of which 75 were held for operating lease and one was recorded as an investment in finance lease. As of December 31, 2016, its portfolio included 65 narrow-body passenger aircraft (including one freighter) and 11 wide-body passenger aircraft (including two freighters). Its aircraft are leased under multi-year contracts to various group of airlines in Europe; Asia and South Pacific; Mexico, South and Central America; North America, and Middle East and Africa. Its portfolio includes aircrafts, such as B737-700 and A320-200.

Aercap Holdings N.V. Company Profile

AerCap Holdings N.V. is an independent aircraft leasing company. The Company focuses on acquiring in-demand aircraft, funding them, hedging interest rate risk and using its platform to deploy these assets. It operates its business on a global basis, leasing aircraft to customers in various geographical regions. The Company is engaged in leasing, financing, sales and management of commercial aircraft and engines. It owned 1,022 aircraft, managed 95 aircraft and had approximately 420 new aircraft on order, which included 204 Airbus A320neo Family aircraft, 109 Boeing 737MAX aircraft, 50 Embraer E-Jets E2 aircraft, 38 Boeing 787 aircraft and 19 Airbus A350 aircraft, as of December 31, 2016. As of December 31, 2016, its owned and managed aircraft were leased to approximately 200 customers in approximately 80 countries. AeroTurbine, Inc. is the subsidiary of the Company.

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