Comparing Aircastle (AYR) & The Competition

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

Analyst Ratings

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This is a summary of current ratings and recommmendations for Aircastle and its peers, 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 82 400 633 50 2.56



Aircastle presently has a consensus target price of $24.67, indicating a potential upside of 25.15%. As a group, “Equipment rental & leasing, not elsewhere classified” companies have a potential upside of 18.31%. Given Aircastle’s higher probable upside, equities analysts plainly believe Aircastle is more favorable than its peers.

Profitability

This table compares Aircastle and its peers’ 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 4.16% 3.30% -0.57%

Dividends

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 raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Aircastle and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Aircastle $796.62 million $147.87 million 10.54
Aircastle Competitors $1.49 billion $248.94 million -0.65

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

Institutional and Insider Ownership

61.6% of Aircastle shares are held by institutional investors. Comparatively, 58.4% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by institutional investors. 1.8% of Aircastle shares are held by insiders. Comparatively, 14.1% of shares of all “Equipment rental & leasing, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Aircastle has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Aircastle’s peers have a beta of 1.87, meaning that their average stock price is 87% more volatile than the S&P 500.

Summary

Aircastle peers 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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