Applied Industrial Technologies (AIT) & Willis Lease Finance (WLFC) Head-To-Head Review

Applied Industrial Technologies (NYSE:AIT) and Willis Lease Finance (NASDAQ:WLFC) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

89.4% of Applied Industrial Technologies shares are held by institutional investors. Comparatively, 36.0% of Willis Lease Finance shares are held by institutional investors. 3.1% of Applied Industrial Technologies shares are held by insiders. Comparatively, 51.9% of Willis Lease Finance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Applied Industrial Technologies and Willis Lease Finance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Industrial Technologies 0 2 1 0 2.33
Willis Lease Finance 0 0 0 0 N/A

Applied Industrial Technologies currently has a consensus price target of $75.00, suggesting a potential upside of 12.21%. Given Applied Industrial Technologies’ higher possible upside, equities research analysts plainly believe Applied Industrial Technologies is more favorable than Willis Lease Finance.

Risk and Volatility

Applied Industrial Technologies has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Willis Lease Finance has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500.

Valuation & Earnings

This table compares Applied Industrial Technologies and Willis Lease Finance’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Industrial Technologies $3.07 billion 0.84 $141.62 million $3.74 17.87
Willis Lease Finance $274.84 million 0.80 $62.15 million N/A N/A

Applied Industrial Technologies has higher revenue and earnings than Willis Lease Finance.

Profitability

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

Net Margins Return on Equity Return on Assets
Applied Industrial Technologies 4.82% 19.66% 7.78%
Willis Lease Finance 23.74% 9.78% 1.49%

Dividends

Applied Industrial Technologies pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Willis Lease Finance does not pay a dividend. Applied Industrial Technologies pays out 32.1% of its earnings in the form of a dividend. Applied Industrial Technologies has increased its dividend for 8 consecutive years.

Summary

Applied Industrial Technologies beats Willis Lease Finance on 12 of the 15 factors compared between the two stocks.

Applied Industrial Technologies Company Profile

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. The company offers its products for maintenance, repair, and operational, as well as original equipment manufacturing customers. It operates in two segments, Service Center Based Distribution, and Fluid Power and Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and hydraulic, pneumatic, lubrication, filtration, and flow control components and systems. It also operates fabricated rubber shops that modify and repair conveyor belts, as well as provide hose assemblies; and rubber service field crews to install and repair conveyor belts and rubber lining at customer locations. In addition, the company rebuilds or assembles speed reducers, pumps, valves, cylinders, and electric and hydraulic motors, as well as custom machining products; and offers flow control and technical support services. It offers industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, mining, oil and gas, primary metals, transportation, and utilities, as well as to government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.

Willis Lease Finance Company Profile

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.

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