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 $6.5B — 3.5× the size. Aercap Holdings N.V. trades at the lower P/E: 7.2× against 18.2×. 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 (1.85% vs 0.01%). 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 7.22 18.16 19.17
P/S 2.60 3.20 0.99
P/B 1.26 1.83 2.23
Price to free cash flow 3.59 n/m 8.31
EV/EBITDA 7.73 15.53 7.84
EV/Sales 7.17 8.89 2.53
Earnings yield 13.85% 5.51% 0.95%
Free cash flow yield 27.82% (70.91%) 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% —
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 0.01% 1.85% 1.59%
Payout ratio 0.00 0.35 0.00

Size

Metric AER GATX Rental & Leasing Services median
Market cap 22.46b 6.47b 2.42b

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