Comparing AerSale (NASDAQ:ASLE) & AAR (NYSE:AIR)

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

Insider and Institutional Ownership

69.5% of AerSale shares are held by institutional investors. Comparatively, 90.7% of AAR shares are held by institutional investors. 19.2% of AerSale shares are held by company insiders. Comparatively, 3.6% of AAR shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for AerSale and AAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	1	3	0	0	1.75
AAR	0	2	4	0	2.67

AerSale currently has a consensus target price of $7.00, indicating a potential downside of 1.55%. AAR has a consensus target price of $93.25, indicating a potential upside of 9.45%. Given AAR’s stronger consensus rating and higher possible upside, analysts clearly believe AAR is more favorable than AerSale.

Volatility and Risk

AerSale has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, AAR has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares AerSale and AAR”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	0.97	$5.85 million	$0.13	54.69
AAR	$2.78 billion	1.20	$12.50 million	$0.78	109.23

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

Profitability

This table compares AerSale and AAR’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%
AAR	1.01%	12.29%	5.16%

Summary

AAR beats AerSale on 12 of the 14 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 AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.