Head to Head Contrast: AerSale (NASDAQ:ASLE) & Loar (NYSE:LOAR)

Loar (NYSE:LOAR) and AerSale (NASDAQ:ASLE) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares Loar and AerSale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	13.33%	6.45%	4.85%
AerSale	1.73%	2.10%	1.40%

Valuation and Earnings

This table compares Loar and AerSale”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$474.97 million	13.44	$22.23 million	$0.66	103.30
AerSale	$345.07 million	0.94	$5.85 million	$0.13	52.85

Loar has higher revenue and earnings than AerSale. AerSale is trading at a lower price-to-earnings ratio than Loar, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Loar has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, AerSale has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Loar and AerSale, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	1	4	1	3.00
AerSale	1	4	0	0	1.80

Loar presently has a consensus target price of $90.75, indicating a potential upside of 33.10%. AerSale has a consensus target price of $7.00, indicating a potential upside of 1.89%. Given Loar’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Loar is more favorable than AerSale.

Institutional and Insider Ownership

69.5% of AerSale shares are owned by institutional investors. 22.6% of Loar shares are owned by company insiders. Comparatively, 19.2% of AerSale shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Loar beats AerSale on 14 of the 15 factors compared between the two stocks.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.