Aercap Holdings N.V. (AER) vs United Rentals, Inc. (URI)

Aercap Holdings N.V. and United Rentals, Inc. are both Rental & Leasing Services companies. United Rentals, Inc. is the larger, with a market value of $64.6B against $25.7B — 2.5× the size. Aercap Holdings N.V. trades at the lower P/E: 8.5× against 23.2×. United Rentals, Inc. grew revenue faster over the last twelve months: 9.45% against 8.68%. Aercap Holdings N.V. has the higher net margin (34.5% vs 16.3%) and the lower return on invested capital (3.46% vs 11.5%). Both pay a dividend; Aercap Holdings N.V. yields more (0.87% vs 0.73%). Across the 23 metrics below, Aercap Holdings N.V. leads on 14 and United Rentals, Inc. on 9.

Valuation

Metric AER URI Rental & Leasing Services median
P/E 8.54 23.20 19.79
P/S 2.84 3.75 1.12
P/B 1.38 6.77 2.56
Price to free cash flow 3.88 27.79 11.09
EV/EBITDA 8.39 10.33 8.53
EV/Sales 7.32 4.58 2.94
Earnings yield 11.71% 4.31% 3.37%
Free cash flow yield 25.75% 3.60% 0.64%

Profitability

Metric AER URI Rental & Leasing Services median
Gross margin 100.00% 39.08% 48.46%
Operating margin 56.96% 25.54% 8.37%
Net margin 34.46% 16.33% 1.97%
Free cash flow margin 73.14% 13.50% 2.91%
Return on equity 17.00% 30.56% 12.88%
Return on assets 4.34% 9.09% 0.88%
Return on invested capital 3.46% 11.53% 2.86%

Growth

Metric AER URI Rental & Leasing Services median
Revenue growth (TTM) 8.68% 9.45% 4.47%
EPS growth (last fiscal year) 97.41% (0.21%) 1.04%
Revenue growth, 5-year CAGR 13.64% 13.55% 11.45%
Net income growth, 5-year CAGR 0.00% 22.89% 0.00%

Health

Metric AER URI Rental & Leasing Services median
Debt to equity 2.32 1.51 1.28
Current ratio 0.41 0.80 0.87
Net debt to EBITDA 4.74 1.94 4.19

Dividend

Metric AER URI Rental & Leasing Services median
Dividend yield 0.87% 0.73% 1.40%
Payout ratio 0.08 0.17 0.24

Size

Metric AER URI Rental & Leasing Services median
Market cap 25.66b 64.63b 3.17b

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