Transcat (NASDAQ:TRNS) & Aercap (NYSE:AER) Head to Head Contrast

Aercap (NYSE:AER) and Transcat (NASDAQ:TRNS) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for Aercap and Transcat, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aercap	0	1	9	1	3.00
Transcat	1	2	0	0	1.67

Aercap presently has a consensus price target of $172.56, suggesting a potential upside of 19.66%. Transcat has a consensus price target of $95.00, suggesting a potential upside of 3.45%. Given Aercap’s stronger consensus rating and higher probable upside, equities analysts plainly believe Aercap is more favorable than Transcat.

Profitability

This table compares Aercap and Transcat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aercap	37.85%	17.60%	4.51%
Transcat	0.99%	5.56%	3.44%

Volatility and Risk

Aercap has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Transcat has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Insider & Institutional Ownership

96.4% of Aercap shares are owned by institutional investors. Comparatively, 98.3% of Transcat shares are owned by institutional investors. 0.5% of Aercap shares are owned by company insiders. Comparatively, 1.8% of Transcat shares 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.

Valuation & Earnings

This table compares Aercap and Transcat”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aercap	$8.52 billion	2.83	$3.75 billion	$20.32	7.10
Transcat	$331.88 million	2.60	$5.38 million	$0.37	248.19

Aercap has higher revenue and earnings than Transcat. Aercap is trading at a lower price-to-earnings ratio than Transcat, indicating that it is currently the more affordable of the two stocks.

Summary

Aercap beats Transcat on 12 of the 15 factors compared between the two stocks.

About Aercap

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft and engines; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. In addition, the company provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. Further, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. The company had a portfolio of owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

About Transcat

Transcat, Inc. provides calibration and laboratory instrument services in the United States, Canada, and internationally. It operates through two segments: Service and Distribution. The Service segment offers calibration, repair, inspection, analytical qualification, preventative maintenance, consulting, and other related services. This segment also provides CalTrak, a proprietary document and asset management system that is used to manage the workflow of its calibration service centers and customers’ assets; and Compliance, Control and Cost, an online customer portal that provides its customers with web-based asset management capability, as well as a safe and secure off-site archive of calibration and other service records. The Distribution segment sells and rents test, measurement, and control instruments for customers’ test and measurement instrumentation needs, as well as value added services, such as calibration/certification of equipment purchase, equipment rental, used equipment for sale, and equipment kitting. This segment markets and sells its products through website, digital and print advertising, proactive outbound sales, and an inbound call center. The company provides services and products to highly regulated industries, principally life science, which includes companies in the pharmaceutical, biotechnology, medical device, and other FDA-regulated industries; and additional industries, including aerospace and defense industrial manufacturing, energy and utilities, and other industries that require accuracy in processes and confirmation of the capabilities of their equipment. Transcat, Inc. was incorporated in 1964 and is headquartered in Rochester, New York.