WallStSmart

Air Lease Corporation (AL)vsUnited Rentals Inc (URI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Rentals Inc generates 434% more annual revenue ($16.10B vs $3.02B). AL leads profitability with a 36.1% profit margin vs 15.5%. AL appears more attractively valued with a PEG of 0.49. AL earns a higher WallStSmart Score of 84/100 (A-).

AL

Exceptional Buy

84

out of 100

Grade: A-

Growth: 8.0Profit: 7.5Value: 10.0Quality: 3.8
Piotroski: 4/9Altman Z: 0.58

URI

Buy

63

out of 100

Grade: C+

Growth: 4.7Profit: 9.0Value: 7.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ALUndervalued (+85.1%)

Margin of Safety

+85.1%

Fair Value

$434.77

Current Price

$64.74

$370.03 discount

UndervaluedFair: $434.77Overvalued
URISignificantly Overvalued (-233.1%)

Margin of Safety

-233.1%

Fair Value

$262.34

Current Price

$747.59

$485.25 premium

UndervaluedFair: $262.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

URI2 strengths · Avg: 8.5/10
Return on EquityProfitability
28.4%9/10

Every $100 of equity generates 28 in profit

Operating MarginProfitability
25.2%8/10

Strong operational efficiency at 25.2%

Areas to Watch

AL2 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-480.80M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.582/10

Distress zone — elevated risk

URI4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-1.9%2/10

Earnings declined 1.9%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : URI

The strongest argument for URI centers on Return on Equity, Operating Margin. Profitability is solid with margins at 15.5% and operating margin at 25.2%. PEG of 1.17 suggests the stock is reasonably priced for its growth.

Bear Case : AL

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

Bear Case : URI

The primary concerns for URI are Revenue Growth, Altman Z-Score, Piotroski F-Score.

Key Dynamics to Monitor

AL profiles as a growth stock while URI is a value play — different risk/reward profiles.

URI carries more volatility with a beta of 1.65 — expect wider price swings.

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

URI generates stronger free cash flow (577M), providing more financial flexibility.

Bottom Line

AL scores higher overall (84/100 vs 63/100), backed by strong 36.1% margins and 15.1% revenue growth. Both earn "Exceptional 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.

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.

United Rentals Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

United Rentals, Inc. (NYSE: URI) is the world's largest equipment rental company, with about 13 percent of the North American market share as of 2019.

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