Aercap Holdings N.V. (AER) vs Ryder System, Inc. (R)

Aercap Holdings N.V. and Ryder System, Inc. are both Rental & Leasing Services companies. Aercap Holdings N.V. is the larger, with a market value of $25.7B against $10.3B — 2.5× the size. Aercap Holdings N.V. trades at the lower P/E: 8.4× against 20.6×. Aercap Holdings N.V. grew revenue faster over the last twelve months: 8.68% against 3.16%. Aercap Holdings N.V. has the higher net margin (34.5% vs 3.98%) and the lower return on invested capital (3.46% vs 6.45%). Both pay a dividend; Ryder System, Inc. yields more (1.39% vs 0.88%). Across the 22 metrics below, Aercap Holdings N.V. leads on 14 and Ryder System, Inc. on 8.

Valuation

Metric AER R Rental & Leasing Services median
P/E 8.40 20.57 20.11
P/S 2.79 0.79 1.11
P/B 1.36 3.47 2.44
Price to free cash flow 3.82 7.16 11.04
EV/EBITDA 8.34 6.00 8.70
EV/Sales 7.27 1.33 2.87
Earnings yield 11.91% 4.86% 3.40%
Free cash flow yield 26.18% 13.96% 0.63%

Profitability

Metric AER R Rental & Leasing Services median
Gross margin 100.00% 19.58% 48.46%
Operating margin 56.96% 7.87% 8.37%
Net margin 34.46% 3.98% 1.97%
Free cash flow margin 73.14% 11.02% 2.91%
Return on equity 17.00% 17.13% 12.31%
Return on assets 4.34% 3.18% 0.88%
Return on invested capital 3.46% 6.45% 2.86%

Growth

Metric AER R Rental & Leasing Services median
Revenue growth (TTM) 8.68% 3.16% 4.47%
EPS growth (last fiscal year) 97.41% 7.96% 1.04%
Revenue growth, 5-year CAGR 13.64% 8.51% 11.45%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AER R Rental & Leasing Services median
Debt to equity 2.32 2.42 1.28
Current ratio 0.41 0.67 1.01
Net debt to EBITDA 4.74 2.56 4.19

Dividend

Metric AER R Rental & Leasing Services median
Dividend yield 0.88% 1.39% 1.38%
Payout ratio 0.08 0.29 0.24

Size

Metric AER R Rental & Leasing Services median
Market cap 25.66b 10.33b 3.37b

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