AerSale (NASDAQ:ASLE) vs. Loar (NYSE:LOAR) Head to Head Analysis

AerSale (NASDAQ:ASLE) and Loar (NYSE:LOAR) are both aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Earnings and Valuation

This table compares AerSale and Loar”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	0.98	$5.85 million	$0.13	55.00
Loar	$402.82 million	16.20	$22.23 million	$0.66	105.63

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

Profitability

This table compares AerSale and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerSale	1.73%	2.10%	1.40%
Loar	13.33%	6.45%	4.85%

Analyst Recommendations

This is a summary of current ratings for AerSale and Loar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	1	3	0	0	1.75
Loar	0	1	4	1	3.00

AerSale currently has a consensus price target of $7.00, suggesting a potential downside of 2.10%. Loar has a consensus price target of $90.75, suggesting a potential upside of 30.17%. Given Loar’s stronger consensus rating and higher probable upside, analysts clearly believe Loar is more favorable than AerSale.

Insider & Institutional Ownership

69.5% of AerSale shares are held by institutional investors. 19.2% of AerSale shares are held by insiders. Comparatively, 22.6% of Loar shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

AerSale has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Loar has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500.

Summary

Loar beats AerSale on 14 of the 15 factors compared between the two stocks.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.