Aercap Holdings N.V. (AER) vs GATX Corporation (GATX)

Aercap Holdings N.V. and GATX Corporation are both Rental & Leasing Services companies. Aercap Holdings N.V. is the larger, with a market value of $22.5B against $5.8B — 3.9× the size. Aercap Holdings N.V. trades at the lower P/E: 7.1× against 16.4×. GATX Corporation grew revenue faster over the last twelve months: 22.8% against 12.2%. Aercap Holdings N.V. has the higher net margin (37.9% vs 17.6%) and the higher return on invested capital (3.84% vs 2.46%). Both pay a dividend; GATX Corporation yields more (1.56% vs 1.01%). Across the 22 metrics below, Aercap Holdings N.V. leads on 18 and GATX Corporation on 4.

Valuation

Metric AER GATX Rental & Leasing Services median
P/E 7.05 16.35 18.17
P/S 2.54 2.88 0.92
P/B 1.24 1.65 2.15
Price to free cash flow 3.51 n/m 7.80
EV/EBITDA 7.66 14.98 7.72
EV/Sales 7.11 8.58 2.47
Earnings yield 14.18% 6.11% 1.00%
Free cash flow yield 28.49% (78.71%) 1.43%

Profitability

Metric AER GATX Rental & Leasing Services median
Gross margin 100.00% 73.63% 49.40%
Operating margin 61.91% 29.05% 8.49%
Net margin 37.85% 17.64% 1.01%
Free cash flow margin 72.28% (226.65%) 1.87%
Return on equity 18.66% 11.57% 12.13%
Return on assets 4.69% 2.34% 0.24%
Return on invested capital 3.84% 2.46% 2.80%

Growth

Metric AER GATX Rental & Leasing Services median
Revenue growth (TTM) 12.24% 22.81% 3.21%
EPS growth (last fiscal year) 97.41% 17.22% (8.44%)
Revenue growth, 5-year CAGR 13.64% 7.55% 12.97%
Net income growth, 5-year CAGR 0.00% 16.72% 0.00%

Health

Metric AER GATX Rental & Leasing Services median
Debt to equity 2.32 3.44 1.48
Current ratio 0.28 3.90 1.36
Net debt to EBITDA 4.74 7.65 4.32

Dividend

Metric AER GATX Rental & Leasing Services median
Dividend yield 1.01% 1.56% 1.56%
Payout ratio 0.07 0.26 0.22

Size

Metric AER GATX Rental & Leasing Services median
Market cap 22.53b 5.83b 2.43b

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