Reviewing QXO (NYSE:QXO) and Aercap (NYSE:AER)

Aercap (NYSE:AER) and QXO (NYSE:QXO) are both large-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends and earnings.

Risk & Volatility

Aercap has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, QXO has a beta of 2.3, suggesting that its stock price is 130% more volatile than the S&P 500.

Valuation and Earnings

This table compares Aercap and QXO”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aercap	$8.52 billion	2.86	$3.75 billion	$20.32	7.17
QXO	$6.84 billion	1.59	-$279.40 million	($0.90)	-11.67

Aercap has higher revenue and earnings than QXO. QXO is trading at a lower price-to-earnings ratio than Aercap, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Aercap and QXO, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aercap	0	2	8	1	2.91
QXO	1	1	14	1	2.88

Aercap presently has a consensus price target of $173.11, indicating a potential upside of 18.80%. QXO has a consensus price target of $24.77, indicating a potential upside of 135.87%. Given QXO’s higher possible upside, analysts clearly believe QXO is more favorable than Aercap.

Institutional & Insider Ownership

96.4% of Aercap shares are owned by institutional investors. Comparatively, 58.7% of QXO shares are owned by institutional investors. 0.5% of Aercap shares are owned by company insiders. Comparatively, 41.0% of QXO shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Aercap and QXO’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aercap	37.85%	17.60%	4.51%
QXO	-5.17%	2.41%	1.20%

Summary

Aercap beats QXO on 9 of the 14 factors compared between the two stocks.

About Aercap

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft and engines; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. In addition, the company provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. Further, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. The company had a portfolio of owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.