Critical Survey: Willis Lease Finance (NASDAQ:WLFC) versus SOS (NYSE:SOS)

SOS (NYSE:SOS) and Willis Lease Finance (NASDAQ:WLFC) are both small-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

1.9% of SOS shares are held by institutional investors. Comparatively, 93.7% of Willis Lease Finance shares are held by institutional investors. 2.7% of SOS shares are held by insiders. Comparatively, 53.3% 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 company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for SOS and Willis Lease Finance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SOS	1	0	0	0	1.00
Willis Lease Finance	0	1	0	1	3.00

Willis Lease Finance has a consensus price target of $71.00, suggesting a potential upside of 27.90%. Given Willis Lease Finance’s stronger consensus rating and higher probable upside, analysts clearly believe Willis Lease Finance is more favorable than SOS.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SOS	N/A	N/A	N/A
Willis Lease Finance	11.80%	14.11%	2.64%

Earnings and Valuation

This table compares SOS and Willis Lease Finance”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SOS	$154.29 million	0.08	-$97.32 million	N/A	N/A
Willis Lease Finance	$730.24 million	1.61	$113.76 million	$3.99	13.91

Willis Lease Finance has higher revenue and earnings than SOS.

Volatility and Risk

SOS has a beta of 2.6, meaning that its stock price is 160% more volatile than the S&P 500. Comparatively, Willis Lease Finance has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Summary

Willis Lease Finance beats SOS on 11 of the 12 factors compared between the two stocks.

About SOS

SOS Limited provides data mining and analysis services to corporate and individual members in the People's Republic of China. It provides marketing data, technology, and solutions for insurance companies; emergency rescue services; and insurance product and health care information portals. The company operates SOS cloud emergency rescue service software as a service platform that offers basic cloud products, such as medical rescue, auto rescue, financial rescue, and life rescue cards; cooperative cloud systems, including information rescue center, intelligent big data, and intelligent software and hardware; and information cloud systems, such as newsToday and E-commerce Today, 10086 hot-line center, information security services, and marketing-related data. It also focuses on cryptocurrency mining, blockchain-based insurance, and security management businesses. The company serves insurance companies, financial institutions, medical institutions, healthcare providers, and other service providers in the emergency rescue services industry. The company is based in Qingdao, the People's Republic of China.

About Willis Lease Finance

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.