Textainer Group (NYSE: TGH) and Air Lease (NYSE:AL) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
This is a summary of current ratings for Textainer Group and Air Lease, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Textainer Group currently has a consensus target price of $23.50, suggesting a potential upside of 34.29%. Air Lease has a consensus target price of $52.35, suggesting a potential upside of 23.00%. Given Textainer Group’s higher probable upside, research analysts clearly believe Textainer Group is more favorable than Air Lease.
Valuation & Earnings
This table compares Textainer Group and Air Lease’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Textainer Group||$490.85 million||2.04||$19.36 million||$0.41||42.68|
|Air Lease||$1.45 billion||3.04||$756.15 million||$3.65||11.66|
Air Lease has higher revenue and earnings than Textainer Group. Air Lease is trading at a lower price-to-earnings ratio than Textainer Group, indicating that it is currently the more affordable of the two stocks.
Air Lease pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Textainer Group does not pay a dividend. Air Lease pays out 11.0% of its earnings in the form of a dividend. Air Lease has increased its dividend for 4 consecutive years.
Risk and Volatility
Textainer Group has a beta of 2.49, meaning that its share price is 149% more volatile than the S&P 500. Comparatively, Air Lease has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.
Institutional & Insider Ownership
27.0% of Textainer Group shares are owned by institutional investors. Comparatively, 90.5% of Air Lease shares are owned by institutional investors. 9.3% of Air Lease shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Textainer Group and Air Lease’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Air Lease beats Textainer Group on 13 of the 17 factors compared between the two stocks.
Textainer Group Company Profile
Textainer Group Holdings Limited is a holding company. The Company is involved in the purchase, ownership, management, leasing and disposal of a fleet of intermodal containers. The Company operates in three segments: Container Ownership, which owns containers; Container Management, which manages containers on behalf of affiliated and unaffiliated container investors, and provides acquisition, management and disposal services, and total managed containers, and Container Resale, which sells containers from its fleet when they reach the end of their useful lives in marine service, and also purchases and leases or resells containers from shipping line customers, container traders and other sellers of containers. The Company is a lessor of intermodal containers based on fleet size. The Company is also a seller of used containers. The Company’s subsidiaries include Textainer Equipment Management Limited (TEML) and Textainer Limited (TL).
Air Lease Company Profile
Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2017, the company owned a fleet of 244 aircraft, including 188 narrowbody jet aircraft and 56 widebody jet aircraft. Air Lease Corporation was founded in 2010 and is based in Los Angeles, California.
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