AAR (NYSE:AIR) vs. AerSale (NASDAQ:ASLE) Head-To-Head Contrast
by Kim Johansen · The Markets DailyAAR (NYSE:AIR – Get Free Report) and AerSale (NASDAQ:ASLE – Get Free Report) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitability, institutional ownership, risk and earnings.
Profitability
This table compares AAR and AerSale’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AAR | 1.01% | 12.29% | 5.16% |
| AerSale | 1.73% | 2.10% | 1.40% |
Insider & Institutional Ownership
90.7% of AAR shares are held by institutional investors. Comparatively, 69.5% of AerSale shares are held by institutional investors. 3.6% of AAR shares are held by insiders. Comparatively, 19.2% of AerSale shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares AAR and AerSale”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AAR | $2.78 billion | 1.16 | $12.50 million | $0.78 | 106.04 |
| AerSale | $345.07 million | 0.96 | $5.85 million | $0.13 | 54.00 |
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.
Risk and Volatility
AAR has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, AerSale has a beta of 0.18, meaning that its share price is 82% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for AAR and AerSale, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AAR | 0 | 2 | 4 | 0 | 2.67 |
| AerSale | 1 | 3 | 0 | 0 | 1.75 |
AAR presently has a consensus target price of $93.25, indicating a potential upside of 12.74%. AerSale has a consensus target price of $7.00, indicating a potential downside of 0.28%. Given AAR’s stronger consensus rating and higher probable upside, equities analysts clearly believe AAR is more favorable than AerSale.
Summary
AAR beats AerSale on 12 of the 14 factors compared between the two stocks.
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.
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.