Analyzing Willis Lease Finance (WLFC) & Kaman (KAMN)

Willis Lease Finance (NASDAQ:WLFC) and Kaman (NYSE:KAMN) are both transportation companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

36.0% of Willis Lease Finance shares are owned by institutional investors. Comparatively, 91.4% of Kaman shares are owned by institutional investors. 51.9% of Willis Lease Finance shares are owned by company insiders. Comparatively, 2.4% of Kaman shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Kaman pays an annual dividend of $0.80 per share and has a dividend yield of 1.4%. Willis Lease Finance does not pay a dividend. Kaman pays out 35.9% of its earnings in the form of a dividend. Kaman has increased its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Willis Lease Finance and Kaman’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Willis Lease Finance N/A N/A N/A N/A N/A
Kaman $1.81 billion 0.92 $49.82 million $2.23 26.49

Kaman has higher revenue and earnings than Willis Lease Finance.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Willis Lease Finance and Kaman, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Willis Lease Finance 0 0 0 0 N/A
Kaman 0 2 0 0 2.00

Kaman has a consensus price target of $70.00, suggesting a potential upside of 18.50%. Given Kaman’s higher possible upside, analysts clearly believe Kaman is more favorable than Willis Lease Finance.

Profitability

This table compares Willis Lease Finance and Kaman’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Willis Lease Finance N/A N/A N/A
Kaman 2.40% 11.09% 4.86%

Summary

Kaman beats Willis Lease Finance on 8 of the 10 factors compared between the two stocks.

About Willis Lease Finance

Willis Lease Finance Corporation, together with its subsidiaries, leases large and regional spare commercial aircraft engines, auxiliary power units, and aircraft worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. It also purchases and resells commercial aircraft engines; and sells aircraft engine parts and materials. The company offers noise-compliant Stage III commercial jet engines. It serves airlines and aircraft engine manufacturers, as well as maintenance, repair, and overhaul providers. As of December 31, 2017, the company had a total lease portfolio of 225 engines and related equipment, 16 aircraft, and 7 other leased parts and equipment with 80 lessees in 43 countries; and managed a total lease portfolio of 437 engines and related equipment on behalf of other parties, as well as 393 engines. Willis Lease Finance Corporation was founded in 1985 and is headquartered in Novato, California.

About Kaman

Kaman Corporation operates in the aerospace and distribution markets. It operates through two segments, Distribution and Aerospace. The Distribution segment distributes electro-mechanical products; bearings; and power transmission, motion control, and electrical and fluid power components, as well as offers value-added services. This segment serves maintenance, repair, and overhaul markets; and original equipment manufacturer customers. The Aerospace segment produces and markets aircraft bearings and components; super precision miniature ball bearings for the medical, industrial, and aerospace markets; and metallic and composite aerostructures for commercial, military, and general aviation fixed and rotary wing aircraft. This segment also provides safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; undertakes helicopter subcontract works; restores, modifies, and supports its SH-2G Super Seasprite maritime helicopters; and manufactures and supports K-MAX manned and unmanned medium-to-heavy lift helicopters, as well as offers engineering design, analysis, and certification services. The company operates in North America, Europe, the Middle East, Asia, Oceania, and other countries. Kaman Corporation was founded in 1945 and is headquartered in Bloomfield, Connecticut.

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