Aercap Holdings N.V. (NYSE: AER) and Textainer Group Holdings Limited (NYSE:TGH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Profitability

This table compares Aercap Holdings N.V. and Textainer Group Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aercap Holdings N.V. 22.26% 14.43% 2.97%
Textainer Group Holdings Limited -13.12% -6.45% -1.79%

Risk and Volatility

Aercap Holdings N.V. has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500. Comparatively, Textainer Group Holdings Limited has a beta of 2.32, meaning that its share price is 132% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Aercap Holdings N.V. and Textainer Group Holdings Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aercap Holdings N.V. 0 1 9 0 2.90
Textainer Group Holdings Limited 0 1 2 0 2.67

Aercap Holdings N.V. currently has a consensus target price of $57.80, indicating a potential upside of 20.52%. Textainer Group Holdings Limited has a consensus target price of $18.67, indicating a potential upside of 24.44%. Given Textainer Group Holdings Limited’s higher probable upside, analysts plainly believe Textainer Group Holdings Limited is more favorable than Aercap Holdings N.V..

Valuation & Earnings

This table compares Aercap Holdings N.V. and Textainer Group Holdings Limited’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Aercap Holdings N.V. $4.99 billion 1.54 $2.39 billion $6.38 7.52
Textainer Group Holdings Limited $478.46 million 1.78 $312.75 million ($1.10) -13.64

Aercap Holdings N.V. has higher revenue and earnings than Textainer Group Holdings Limited. Textainer Group Holdings Limited is trading at a lower price-to-earnings ratio than Aercap Holdings N.V., indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

89.9% of Aercap Holdings N.V. shares are held by institutional investors. Comparatively, 22.2% of Textainer Group Holdings Limited shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Aercap Holdings N.V. beats Textainer Group Holdings Limited on 9 of the 12 factors compared between the two stocks.

Aercap Holdings N.V. Company Profile

AerCap Holdings N.V. is an independent aircraft leasing company. The Company focuses on acquiring in-demand aircraft, funding them, hedging interest rate risk and using its platform to deploy these assets. It operates its business on a global basis, leasing aircraft to customers in various geographical regions. The Company is engaged in leasing, financing, sales and management of commercial aircraft and engines. It owned 1,022 aircraft, managed 95 aircraft and had approximately 420 new aircraft on order, which included 204 Airbus A320neo Family aircraft, 109 Boeing 737MAX aircraft, 50 Embraer E-Jets E2 aircraft, 38 Boeing 787 aircraft and 19 Airbus A350 aircraft, as of December 31, 2016. As of December 31, 2016, its owned and managed aircraft were leased to approximately 200 customers in approximately 80 countries. AeroTurbine, Inc. is the subsidiary of the Company.

Textainer Group Holdings Limited Company Profile

Textainer Group Holdings Limited is a holding company. The Company is involved in the purchase, ownership, management, leasing and disposal of a fleet of intermodal containers. The Company operates in three segments: Container Ownership, which owns containers; Container Management, which manages containers on behalf of affiliated and unaffiliated container investors, and provides acquisition, management and disposal services, and total managed containers, and Container Resale, which sells containers from its fleet when they reach the end of their useful lives in marine service, and also purchases and leases or resells containers from shipping line customers, container traders and other sellers of containers. The Company is a lessor of intermodal containers based on fleet size. The Company is also a seller of used containers. The Company’s subsidiaries include Textainer Equipment Management Limited (TEML) and Textainer Limited (TL).

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