Head-To-Head Survey: Air Lease (AL) versus Its Rivals
by Kim Johansen · The Markets DailyAir Lease (NYSE:AL – Get Free Report) is one of 14 public companies in the “TRANS – EQP&LSNG” industry, but how does it contrast to its peers? We will compare Air Lease to related businesses based on the strength of its earnings, profitability, institutional ownership, risk, analyst recommendations, valuation and dividends.
Volatility and Risk
Air Lease has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Air Lease’s peers have a beta of 1.47, indicating that their average stock price is 47% more volatile than the S&P 500.
Institutional & Insider Ownership
94.6% of Air Lease shares are owned by institutional investors. Comparatively, 86.4% of shares of all “TRANS – EQP&LSNG” companies are owned by institutional investors. 6.8% of Air Lease shares are owned by insiders. Comparatively, 10.3% of shares of all “TRANS – EQP&LSNG” companies are owned 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.
Analyst Ratings
This is a summary of current ratings and recommmendations for Air Lease and its peers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air Lease | 0 | 3 | 2 | 1 | 2.67 |
| Air Lease Competitors | 138 | 622 | 1061 | 67 | 2.56 |
Air Lease presently has a consensus target price of $66.00, suggesting a potential upside of 2.03%. As a group, “TRANS – EQP&LSNG” companies have a potential upside of 19.32%. Given Air Lease’s peers higher probable upside, analysts clearly believe Air Lease has less favorable growth aspects than its peers.
Dividends
Air Lease pays an annual dividend of $0.88 per share and has a dividend yield of 1.4%. Air Lease pays out 9.5% of its earnings in the form of a dividend. As a group, “TRANS – EQP&LSNG” companies pay a dividend yield of 1.4% and pay out 20.5% of their earnings in the form of a dividend. Air Lease has raised its dividend for 13 consecutive years.
Profitability
This table compares Air Lease and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Air Lease | 35.72% | 8.54% | 2.13% |
| Air Lease Competitors | -14.27% | 9.45% | 0.84% |
Earnings and Valuation
This table compares Air Lease and its peers gross revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Air Lease | $3.02 billion | $1.09 billion | 6.95 |
| Air Lease Competitors | $3.87 billion | $560.27 million | -32.95 |
Air Lease’s peers have higher revenue, but lower earnings than Air Lease. Air Lease is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Summary
Air Lease beats its peers on 8 of the 15 factors compared.
About Air Lease
Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet aircraft to airlines worldwide. It sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors. The company provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2023, it owned a fleet of 463 aircraft, including 345 narrowbody aircraft and 118 widebody aircraft. Air Lease Corporation was incorporated in 2010 and is headquartered in Los Angeles, California.