Critical Comparison: MITCHAM INDUSTR/SH (MIND) versus Air Lease (AL)

MITCHAM INDUSTR/SH (NASDAQ:MIND) and Air Lease (NYSE:AL) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

72.4% of MITCHAM INDUSTR/SH shares are owned by institutional investors. Comparatively, 88.2% of Air Lease shares are owned by institutional investors. 9.8% of MITCHAM INDUSTR/SH shares are owned by company insiders. Comparatively, 9.3% of Air Lease shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares MITCHAM INDUSTR/SH and Air Lease’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MITCHAM INDUSTR/SH $48.28 million 0.89 -$21.06 million N/A N/A
Air Lease $1.45 billion 2.79 $756.15 million $3.65 10.65

Air Lease has higher revenue and earnings than MITCHAM INDUSTR/SH.

Profitability

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

Net Margins Return on Equity Return on Assets
MITCHAM INDUSTR/SH -67.30% -39.33% -27.84%
Air Lease 51.81% 11.44% 2.96%

Volatility and Risk

MITCHAM INDUSTR/SH has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Air Lease has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for MITCHAM INDUSTR/SH and Air Lease, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MITCHAM INDUSTR/SH 0 0 0 0 N/A
Air Lease 1 2 7 1 2.73

Air Lease has a consensus target price of $55.61, indicating a potential upside of 43.11%. Given Air Lease’s higher probable upside, analysts plainly believe Air Lease is more favorable than MITCHAM INDUSTR/SH.

Dividends

Air Lease pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. MITCHAM INDUSTR/SH does not pay a dividend. Air Lease pays out 11.0% of its earnings in the form of a dividend. Air Lease has increased its dividend for 4 consecutive years.

Summary

Air Lease beats MITCHAM INDUSTR/SH on 13 of the 15 factors compared between the two stocks.

About MITCHAM INDUSTR/SH

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.

About Air Lease

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2017, the company owned a fleet of 244 aircraft, including 188 narrowbody jet aircraft and 56 widebody jet aircraft. Air Lease Corporation was founded in 2010 and is based in Los Angeles, California.

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