Aercap Holdings N.V. (AER) vs Herc Holdings Inc. (HRI)

Aercap Holdings N.V. and Herc Holdings Inc. are both Rental & Leasing Services companies. Aercap Holdings N.V. is the larger, with a market value of $25.7B against $5.0B — 5.1× the size. Aercap Holdings N.V. trades at the lower P/E: 8.4× against 40.8×. Herc Holdings Inc. grew revenue faster over the last twelve months: 19.4% against 8.68%. Aercap Holdings N.V. has the higher net margin (34.5% vs 2.50%) and the lower return on invested capital (3.46% vs 4.21%). Both pay a dividend; Herc Holdings Inc. yields more (1.86% vs 0.88%). Across the 23 metrics below, Aercap Holdings N.V. leads on 14 and Herc Holdings Inc. on 9.

Valuation

Metric AER HRI Rental & Leasing Services median
P/E 8.40 40.81 20.11
P/S 2.79 1.02 1.11
P/B 1.36 2.53 2.44
Price to free cash flow 3.82 16.79 11.04
EV/EBITDA 8.34 6.65 8.70
EV/Sales 7.27 2.66 2.87
Earnings yield 11.91% 2.45% 3.40%
Free cash flow yield 26.18% 5.95% 0.63%

Profitability

Metric AER HRI Rental & Leasing Services median
Gross margin 100.00% 52.64% 48.46%
Operating margin 56.96% 13.75% 8.37%
Net margin 34.46% 2.50% 1.97%
Free cash flow margin 73.14% 6.08% 2.91%
Return on equity 17.00% 6.29% 12.31%
Return on assets 4.34% 0.88% 0.88%
Return on invested capital 3.46% 4.21% 2.86%

Growth

Metric AER HRI Rental & Leasing Services median
Revenue growth (TTM) 8.68% 19.38% 4.47%
EPS growth (last fiscal year) 97.41% (99.59%) 1.04%
Revenue growth, 5-year CAGR 13.64% 19.69% 11.45%
Net income growth, 5-year CAGR 0.00% (57.68%) 0.00%

Health

Metric AER HRI Rental & Leasing Services median
Debt to equity 2.32 4.10 1.28
Current ratio 0.41 1.08 1.01
Net debt to EBITDA 4.74 4.61 4.19

Dividend

Metric AER HRI Rental & Leasing Services median
Dividend yield 0.88% 1.86% 1.38%
Payout ratio 0.08 0.76 0.24

Size

Metric AER HRI Rental & Leasing Services median
Market cap 25.66b 5.01b 3.37b

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