Head to Head Analysis: Aircastle (AYR) and Its Peers

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

Dividends

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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.

Institutional and Insider Ownership

61.6% of Aircastle shares are owned by institutional investors. Comparatively, 58.4% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are owned by institutional investors. 2.7% of Aircastle shares are owned by insiders. Comparatively, 14.2% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Aircastle and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Aircastle $796.62 million $147.87 million 10.48
Aircastle Competitors $1.49 billion $248.19 million 0.00

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aircastle and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aircastle 0 9 1 0 2.10
Aircastle Competitors 80 394 630 50 2.56

Aircastle presently has a consensus target price of $24.67, suggesting a potential upside of 25.85%. As a group, “Equipment rental & leasing, not elsewhere classified” companies have a potential upside of 17.20%. Given Aircastle’s higher possible upside, equities analysts clearly believe Aircastle is more favorable than its rivals.

Profitability

This table compares Aircastle and its rivals’ 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 4.02% 2.98% -0.92%

Volatility and Risk

Aircastle has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Aircastle’s rivals have a beta of 1.86, indicating that their average share price is 86% more volatile than the S&P 500.

Summary

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

About Aircastle

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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