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 $22.5B against $4.4B — 5.1× the size. Aercap Holdings N.V. trades at the lower P/E: 7.2× against 92.2×. Herc Holdings Inc. grew revenue faster over the last twelve months: 28.5% against 12.2%. Aercap Holdings N.V. has the higher net margin (37.9% vs 1.01%) and the lower return on invested capital (3.84% vs 4.04%). Both pay a dividend; Herc Holdings Inc. yields more (1.68% vs 0.01%). 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 7.22 92.16 19.17
P/S 2.60 0.93 0.99
P/B 1.26 2.39 2.23
Price to free cash flow 3.59 11.37 8.31
EV/EBITDA 7.73 6.52 7.84
EV/Sales 7.17 2.57 2.53
Earnings yield 13.85% 1.09% 0.95%
Free cash flow yield 27.82% 8.80% 1.43%

Profitability

Metric AER HRI Rental & Leasing Services median
Gross margin 100.00% 51.98% 49.40%
Operating margin 61.91% 13.12% 8.49%
Net margin 37.85% 1.01% 1.01%
Free cash flow margin 72.28% 8.20% 1.87%
Return on equity 18.66% 2.58% 12.13%
Return on assets 4.69% 0.35% 0.24%
Return on invested capital 3.84% 4.04% 2.80%

Growth

Metric AER HRI Rental & Leasing Services median
Revenue growth (TTM) 12.24% 28.50% 3.21%
EPS growth (last fiscal year) 97.41% (99.59%) —
Revenue growth, 5-year CAGR 13.64% 19.69% 12.97%
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 4.24 1.48
Current ratio 0.28 1.10 1.36
Net debt to EBITDA 4.74 4.61 4.32

Dividend

Metric AER HRI Rental & Leasing Services median
Dividend yield 0.01% 1.68% 1.59%
Payout ratio 0.00 0.21 0.00

Size

Metric AER HRI Rental & Leasing Services median
Market cap 22.46b 4.38b 2.42b

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