WallStSmart

AerCap Holdings NV (AER)vsAir Lease Corporation (AL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AerCap Holdings NV generates 197% more annual revenue ($8.96B vs $3.02B). AER leads profitability with a 37.9% profit margin vs 36.1%. AL appears more attractively valued with a PEG of 0.49. AL earns a higher WallStSmart Score of 84/100 (A-).

AER

Strong Buy

75

out of 100

Grade: B

Growth: 4.7Profit: 8.5Value: 6.7Quality: 3.5
Piotroski: 6/9Altman Z: 0.88

AL

Exceptional Buy

84

out of 100

Grade: A-

Growth: 8.0Profit: 7.5Value: 10.0Quality: 5.0
Piotroski: 6/9Altman Z: 0.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AERSignificantly Overvalued (-58.8%)

Margin of Safety

-58.8%

Fair Value

$93.37

Current Price

$151.72

$58.35 premium

UndervaluedFair: $93.37Overvalued
ALUndervalued (+42.1%)

Margin of Safety

+42.1%

Fair Value

$111.68

Current Price

$65.00

$46.68 discount

UndervaluedFair: $111.68Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AER6 strengths · Avg: 9.5/10
P/E RatioValuation
7.4x10/10

Attractively priced relative to earnings

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
57.5%10/10

Strong operational efficiency at 57.5%

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.808/10

Growing faster than its price suggests

AL6 strengths · Avg: 10.0/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
36.1%10/10

Keeps 36 of every $100 in revenue as profit

Operating MarginProfitability
55.3%10/10

Strong operational efficiency at 55.3%

EPS GrowthGrowth
80.9%10/10

Earnings expanding 80.9% YoY

Areas to Watch

AER4 concerns · Avg: 1.8/10
EPS GrowthGrowth
-35.3%2/10

Earnings declined 35.3%

Free Cash FlowQuality
$-69.91M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

Debt/EquityHealth
2.341/10

Elevated debt levels

AL2 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-259.12M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.662/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AER

The strongest argument for AER centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 57.5%. Revenue growth of 14.9% demonstrates continued momentum.

Bull Case : AL

The strongest argument for AL centers on PEG Ratio, P/E Ratio, Price/Book. Profitability is solid with margins at 36.1% and operating margin at 55.3%. Revenue growth of 15.1% demonstrates continued momentum.

Bear Case : AER

The primary concerns for AER are EPS Growth, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.34 is elevated, increasing financial risk.

Bear Case : AL

The primary concerns for AL are Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

AER profiles as a mature stock while AL is a growth play — different risk/reward profiles.

AL carries more volatility with a beta of 1.08 — expect wider price swings.

AL is growing revenue faster at 15.1% — sustainability is the question.

AER generates stronger free cash flow (-70M), providing more financial flexibility.

Bottom Line

AL scores higher overall (84/100 vs 75/100), backed by strong 36.1% margins and 15.1% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AerCap Holdings NV

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

AerCap Holdings NV is engaged in the leasing, financing, sale and management of commercial aircraft and engines in mainland China, Hong Kong, Macau, the United States, Ireland and internationally. The company is headquartered in Dublin, Ireland.

Air Lease Corporation

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

Air Lease Corporation, an aircraft leasing company, is engaged in the purchase and leasing of new commercial jet aircraft to airlines around the world. The company is headquartered in Los Angeles, California.

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