Applied Industrial Technologies (NYSE: AIT – Get Rating) and AerSale (NASDAQ: ASLE – Get Rating) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Insider and Institutional Ownership:
92.9% of Applied Industrial Technologies shares are owned by institutional investors. Comparatively, 69.0% of AerSale shares are owned by institutional investors. 2.4% of Applied Industrial Technologies shares are owned by company insiders. Comparatively, 79.2% of AerSale shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk:
Applied Industrial Technologies has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, AerSale has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Earnings and Valuation:
This table compares Applied Industrial Technologies and AerSale’s top-line revenue, earnings per share and valuation.
| Gross Revenue: | Price / Sales Ratio: | Net Income: | Earnings Per Share: | Price / Earnings Ratio: | |
| Applied Industrial Technologies: | $ 3.24 billion: | 1.13: | $ 144.76 million: | $ 6.08: | 15.63: |
| AerSale: | $ 340.44 million: | 2.22: | $ 36.12 million: | $ 0.87: | 16.84: |
Applied Industrial Technologies has higher revenue and earnings than AerSale. Applied Industrial Technologies is trading at a lower price-to-earnings ratio than AerSale, indicating that it is currently the most affordable of the two stocks.
Profitability:
This table compares Applied Industrial Technologies and AerSale’s net margins, return on equity and return on assets.
| Net Margins: | Return on Equity: | Return on Assets: | |
| Applied Industrial Technologies: | 6.52% | 23.58% | 10.35% |
| AerSale: | 10.70% | 13.46% | 11.65% |
Analyst Ratings:
This is a summary of current ratings and target prices for Applied Industrial Technologies and AerSale, as provided by MarketBeat.com.
| Sell Ratings: | Hold Ratings: | Buy Ratings: | Strong Buy Ratings: | Rating Score: | |
| Applied Industrial Technologies: | 0: | 0: | 2: | 0: | 3.00: |
| AerSale: | 0: | 1: | 0: | 0: | 2.00: |
Applied Industrial Technologies currently has a consensus price target of $ 116.50, indicating a potential upside of 22.62%. Given Applied Industrial Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Applied Industrial Technologies is more favorable than AerSale.
Summary:
Applied Industrial Technologies beats AerSale on 9 of the 14 factors compared between the two stocks.
About Applied Industrial Technologies: (Get Rating)
Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. It operates through two segments, Service Center Based Distribution, and Fluid Power & Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, as well as other related supplies for general operational needs of customers’ machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides equipment repair and technical support services. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as to government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.
About AerSale: (Get Rating)
AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment also provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.
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