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

Volatility & Risk

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

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 1.58 $2.39 billion $6.38 7.70
Textainer Group Holdings Limited $478.46 million 1.91 $312.75 million ($1.10) -14.64

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.

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%

Analyst Recommendations

This is a summary of current ratings and recommmendations for Aercap Holdings N.V. and Textainer Group Holdings Limited, as reported 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 17.69%. Textainer Group Holdings Limited has a consensus target price of $18.67, indicating a potential upside of 15.94%. Given Aercap Holdings N.V.’s stronger consensus rating and higher possible upside, equities analysts clearly believe Aercap Holdings N.V. is more favorable than Textainer Group Holdings Limited.

Insider and Institutional Ownership

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

Summary

Aercap Holdings N.V. beats Textainer Group Holdings Limited on 10 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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