WallStSmart

AerCap Holdings NV (AER)vsHerc Holdings Inc (HRI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AerCap Holdings NV generates 95% more annual revenue ($8.52B vs $4.38B). AER leads profitability with a 44.0% profit margin vs 0.0%. HRI appears more attractively valued with a PEG of 0.05. AER earns a higher WallStSmart Score of 79/100 (B+).

AER

Strong Buy

79

out of 100

Grade: B+

Growth: 6.0Profit: 8.5Value: 10.0Quality: 4.3
Piotroski: 7/9Altman Z: 0.90

HRI

Buy

60

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 4.7Quality: 4.3
Piotroski: 3/9Altman Z: 1.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AERUndervalued (+59.9%)

Margin of Safety

+59.9%

Fair Value

$369.94

Current Price

$137.82

$232.12 discount

UndervaluedFair: $369.94Overvalued
HRISignificantly Overvalued (-90305.0%)

Margin of Safety

-90305.0%

Fair Value

$0.20

Current Price

$106.72

$106.52 premium

UndervaluedFair: $0.20Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AER6 strengths · Avg: 9.5/10
P/E RatioValuation
6.5x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
44.0%10/10

Keeps 44 of every $100 in revenue as profit

Operating MarginProfitability
48.0%10/10

Strong operational efficiency at 48.0%

Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

PEG RatioValuation
0.808/10

Growing faster than its price suggests

HRI3 strengths · Avg: 8.7/10
PEG RatioValuation
0.0510/10

Growing faster than its price suggests

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
27.1%8/10

Revenue surging 27.1% year-over-year

Areas to Watch

AER2 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-891.09M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.902/10

Distress zone — elevated risk

HRI4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.1%3/10

ROE of 0.1% — below average capital efficiency

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
3418.7x2/10

Premium valuation, high expectations priced in

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 44.0% and operating margin at 48.0%. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bull Case : HRI

The strongest argument for HRI centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 27.1% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.

Bear Case : AER

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

Bear Case : HRI

The primary concerns for HRI are Return on Equity, Profit Margin, Piotroski F-Score. A P/E of 3418.7x leaves little room for execution misses. Thin 0.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

HRI carries more volatility with a beta of 1.71 — expect wider price swings.

HRI is growing revenue faster at 27.1% — sustainability is the question.

HRI generates stronger free cash flow (53M), providing more financial flexibility.

Bottom Line

AER scores higher overall (79/100 vs 60/100), backed by strong 44.0% margins. Both earn "Strong Buy" and "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.

Herc Holdings Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

Herc Holdings Inc. is an equipment rental provider primarily in the United States and internationally. The company is headquartered in Bonita Springs, Florida.

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