Contrasting Neff Corporation (NEFF) and Air Lease Corporation (AL)
Air Lease Corporation (NYSE: AL) and Neff Corporation (NYSE:NEFF) are both transportation companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitabiliy, analyst recommendations and dividends.
This table compares Air Lease Corporation and Neff Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Air Lease Corporation||25.56%||11.02%||2.65%|
Insider & Institutional Ownership
93.8% of Air Lease Corporation shares are owned by institutional investors. Comparatively, 87.6% of Neff Corporation shares are owned by institutional investors. 9.8% of Air Lease Corporation shares are owned by insiders. Comparatively, 9.0% of Neff Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Air Lease Corporation pays an annual dividend of $0.30 per share and has a dividend yield of 0.8%. Neff Corporation does not pay a dividend. Air Lease Corporation pays out 8.9% of its earnings in the form of a dividend. Air Lease Corporation has increased its dividend for 3 consecutive years.
Risk & Volatility
Air Lease Corporation has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500. Comparatively, Neff Corporation has a beta of 3.4, meaning that its share price is 240% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Air Lease Corporation and Neff Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Air Lease Corporation||0||1||5||0||2.83|
Air Lease Corporation presently has a consensus target price of $44.40, suggesting a potential upside of 16.81%. Neff Corporation has a consensus target price of $20.20, suggesting a potential upside of 18.82%. Given Neff Corporation’s higher possible upside, analysts clearly believe Neff Corporation is more favorable than Air Lease Corporation.
Earnings & Valuation
This table compares Air Lease Corporation and Neff Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Air Lease Corporation||$1.44 billion||2.72||$347.66 million||$3.37||11.28|
|Neff Corporation||$403.28 million||0.37||$103.37 million||$1.36||12.50|
Air Lease Corporation has higher revenue and earnings than Neff Corporation. Air Lease Corporation is trading at a lower price-to-earnings ratio than Neff Corporation, indicating that it is currently the more affordable of the two stocks.
Air Lease Corporation beats Neff Corporation on 13 of the 17 factors compared between the two stocks.
About Air Lease Corporation
Air Lease Corporation is an aircraft leasing company. The Company is principally engaged in purchasing new commercial jet transport aircraft directly from aircraft manufacturers, such as The Boeing Company (Boeing) and Airbus S.A.S. (Airbus), and leasing those aircraft to airlines across the world. Along with its leasing activities, the Company sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies and airlines. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee. The Company provides aircraft to airline customers in various markets, such as Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa and North America. As of December 31, 2016, the Company had 237 owned aircraft and 30 aircraft in its managed fleet portfolio.
About Neff Corporation
Neff Corporation is an equipment rental company. The Company offers an array of equipment rental solutions for its customer base, including infrastructure, non-residential construction, oil and gas, and residential construction customers. Its fleet of equipment includes earthmoving, material handling, aerial and other rental equipment. Its earthmoving equipment category includes excavators, backhoes, loaders, bulldozers, mini-excavators, sweepers and tractors, track loaders and skid steers. Its material handling equipment category includes reach forklifts, industrial forklifts and straight-mast forklifts. Its aerial equipment category includes personnel lifts, electric scissor lifts, dual fuel scissor lifts, articulating boom lifts and straight boom lifts. Its other rental equipment category includes compaction and concrete, trucks and trailers, sweepers, generators, welders, lighting, pumps and other small equipment and tools. As of December 31, 2016, it had operated 69 branches.
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