Head to Head Review: Avolon (AVOL) versus Fortress Transportation and Infrastructure Investors (FTAI)

Avolon (NYSE: AVOL) and Fortress Transportation and Infrastructure Investors (NYSE:FTAI) are both financials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of current ratings for Avolon and Fortress Transportation and Infrastructure Investors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avolon 0 0 0 0 N/A
Fortress Transportation and Infrastructure Investors 0 0 3 0 3.00

Fortress Transportation and Infrastructure Investors has a consensus target price of $19.17, indicating a potential upside of 5.78%. Given Fortress Transportation and Infrastructure Investors’ higher probable upside, analysts plainly believe Fortress Transportation and Infrastructure Investors is more favorable than Avolon.

Dividends

Fortress Transportation and Infrastructure Investors pays an annual dividend of $1.32 per share and has a dividend yield of 7.3%. Avolon does not pay a dividend. Fortress Transportation and Infrastructure Investors pays out -2,200.0% of its earnings in the form of a dividend.

Profitability

This table compares Avolon and Fortress Transportation and Infrastructure Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avolon 28.83% 14.90% 3.31%
Fortress Transportation and Infrastructure Investors -2.36% 0.60% 0.39%

Insider & Institutional Ownership

28.0% of Fortress Transportation and Infrastructure Investors shares are held by institutional investors. 0.9% of Fortress Transportation and Infrastructure Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Avolon and Fortress Transportation and Infrastructure Investors’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avolon N/A N/A N/A $1.83 16.90
Fortress Transportation and Infrastructure Investors $148.72 million 9.23 -$20.06 million ($0.06) -302.00

Avolon has higher earnings, but lower revenue than Fortress Transportation and Infrastructure Investors. Fortress Transportation and Infrastructure Investors is trading at a lower price-to-earnings ratio than Avolon, indicating that it is currently the more affordable of the two stocks.

Summary

Fortress Transportation and Infrastructure Investors beats Avolon on 7 of the 11 factors compared between the two stocks.

Avolon Company Profile

Avolon Holdings Limited (Avolon Holdings) is a United States-based holding company, which provides aircraft leasing and lease management services. The Company operates through its wholly owned subsidiary Avolon S.a r.l. (Avolon), which is a global aircraft leasing company focused on acquiring, managing and selling commercial aircraft. Avolon’s owned, managed and committed Portfolio comprises 227 aircraft, including 122 owned, 12 managed and 93 committed aircraft. Avolon’s owned portfolio comprises primarily of narrowbody aircraft, including the Airbus A320 family and the Boeing 737-800, and select widebody aircraft, including the Airbus A330, the Boeing 777 and the Boeing 787. Avolon’s committed Portfolio includes 66 next generation Airbus A320neo, Boeing 737 MAX, Airbus A330neo and Boeing 787 family of aircraft. Avolon has a customer base of 49 customers across 27 countries across the world.

Fortress Transportation and Infrastructure Investors Company Profile

Fortress Transportation and Infrastructure Investors LLC owns and acquires infrastructure and equipment that is essential for the transportation of goods and people across the world. The Company operates through five segments Aviation Leasing, Offshore Energy, Shipping Containers, Jefferson Terminal and Railroad. The Aviation Leasing segment consists of aircraft and aircraft engines held for lease for long-term. The Offshore Energy segment consists of vessels and equipment that support offshore oil and gas activities and held for long-term operating leases. The Shipping Containers segment consists of an investment in an unconsolidated entity engaged in the acquisition and leasing of shipping containers on both an operating lease and finance lease basis. The Jefferson Terminal segment consists of a multi-modal crude and refined products terminal and other related assets. The Railroad segment consists of the Company’s Central Maine and Quebec Railway (CMQR).

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