Contrasting CAI International (CAI) and AerCap (AER)

CAI International (NYSE: CAI) and AerCap (NYSE:AER) are both transportation companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CAI International and AerCap, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAI International 0 1 5 0 2.83
AerCap 1 2 7 0 2.60

CAI International presently has a consensus price target of $35.40, suggesting a potential upside of 47.32%. AerCap has a consensus price target of $60.78, suggesting a potential upside of 10.40%. Given CAI International’s stronger consensus rating and higher probable upside, equities analysts clearly believe CAI International is more favorable than AerCap.

Valuation and Earnings

This table compares CAI International and AerCap’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CAI International $348.39 million 1.41 $72.06 million $2.87 8.37
AerCap $5.04 billion 1.73 $1.08 billion $6.33 8.70

AerCap has higher revenue and earnings than CAI International. CAI International is trading at a lower price-to-earnings ratio than AerCap, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CAI International and AerCap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAI International 23.17% 12.58% 2.88%
AerCap 21.52% 12.54% 2.59%

Risk and Volatility

CAI International has a beta of 2.26, suggesting that its stock price is 126% more volatile than the S&P 500. Comparatively, AerCap has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Insider & Institutional Ownership

79.7% of CAI International shares are owned by institutional investors. Comparatively, 83.6% of AerCap shares are owned by institutional investors. 13.8% of CAI International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

CAI International Company Profile

CAI International, Inc. operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment. The company leases its container equipment to lessees under long-term, short-term, and finance leases. It also sells containers; and provides container management services to third-party investors, as well as sells used containers. In addition, the company leases railcars consisting of box cars for paper and forest products; covered hoppers for grain, cement, sand, plastic pallets, and other industrial products; general purpose tank cars that are used to transport food-grade, and other liquid and gaseous commodities; gondolas for coal and steel; and general service flat cars. Further, it offers domestic and international logistics services, including intermodal, truck brokerage, port drayage, warehousing, international ocean freight, and freight forwarding, as well as the arrangement and coordination of international air freight services and customs brokerage; international export and import services for full container loads, less than container loads, perishable cargo, project cargo, and airfreight; and transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility. As of December 31, 2017, the company had a container fleet comprised 1,282,739 cost equivalent units; and an owned fleet of 7,172 railcars in North America. The company was formerly known as Container Applications International, Inc. and changed its name to CAI International, Inc. in February 2007. CAI International, Inc. was founded in 1989 and is headquartered in San Francisco, California.

AerCap Company Profile

AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in Mainland China, Hong Kong, Macau, the United States, Ireland, and internationally. The company provides aircraft asset management services, including remarketing aircraft; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also comprise periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and aircraft engine valuations; and providing market research services. In addition, the company offers cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and secretarial services consisting of the preparation of budgets and financial statements, and liaising with the rating agencies. Further, it provides engine leasing; certified aircraft engines, airframes, and engine parts; and supply chain solutions. Additionally, the company sells airframe parts to airlines, maintenance, and repair and maintenance service providers, as well as aircraft parts distributors. As of December 31, 2017, it owned and managed a fleet of 1,531 aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

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