FTAI Aviation (FTAI) vs. Its Peers Critical Review

FTAI Aviation (NASDAQ:FTAI) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare FTAI Aviation to related companies based on the strength of its earnings, valuation, risk, profitability, analyst recommendations, dividends and institutional ownership.

Valuation & Earnings

This table compares FTAI Aviation and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	$501.06 million	46.99
FTAI Aviation Competitors	$8.50 billion	$577.31 million	31.73

FTAI Aviation’s rivals have higher revenue and earnings than FTAI Aviation. FTAI Aviation is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 0.9%. FTAI Aviation pays out 43.5% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.0% and pay out 40.4% of their earnings in the form of a dividend. FTAI Aviation lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares FTAI Aviation and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Aviation	15.94%	139.59%	11.26%
FTAI Aviation Competitors	-301.41%	-35.61%	-4.77%

Volatility and Risk

FTAI Aviation has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500. Comparatively, FTAI Aviation’s rivals have a beta of 1.29, suggesting that their average share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

89.0% of FTAI Aviation shares are owned by institutional investors. Comparatively, 50.1% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.4% of FTAI Aviation shares are owned by company insiders. Comparatively, 12.1% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings for FTAI Aviation and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	9	0	2.82
FTAI Aviation Competitors	2017	7990	12294	538	2.50

FTAI Aviation currently has a consensus target price of $315.56, suggesting a potential upside of 45.99%. As a group, “Aerospace & Defense” companies have a potential upside of 27.89%. Given FTAI Aviation’s stronger consensus rating and higher probable upside, research analysts clearly believe FTAI Aviation is more favorable than its rivals.

Summary

FTAI Aviation beats its rivals on 9 of the 15 factors compared.

FTAI Aviation Company Profile

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.