AER vs. CAT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and CAT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
CAT’s market capitalization of 187.12 billion USD is significantly greater than AER’s 20.46 billion USD, highlighting its more substantial market valuation.
With betas of 1.40 for AER and 1.37 for CAT, both stocks show similar sensitivity to overall market movements.
| Symbol | AER | CAT |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Caterpillar Inc. |
| Country | IE | US |
| Sector | Industrials | Industrials |
| Industry | Rental & Leasing Services | Agricultural - Machinery |
| CEO | Aengus Kelly | Joseph E. Creed CPA |
| Price | 115.89 USD | 397.86 USD |
| Market Cap | 20.46 billion USD | 187.12 billion USD |
| Beta | 1.40 | 1.37 |
| Exchange | NYSE | NYSE |
| IPO Date | November 21, 2006 | December 2, 1929 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AER and CAT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AER
12.55%
Rental & Leasing Services Industry
- Max
- 33.37%
- Q3
- 21.32%
- Median
- 10.48%
- Q1
- 2.04%
- Min
- -2.71%
AER’s Return on Equity of 12.55% is on par with the norm for the Rental & Leasing Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
CAT
53.66%
Agricultural - Machinery Industry
- Max
- 23.98%
- Q3
- 16.61%
- Median
- 13.29%
- Q1
- 0.18%
- Min
- -21.23%
CAT’s Return on Equity of 53.66% is exceptionally high, placing it well beyond the typical range for the Agricultural - Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
AER
3.17%
Rental & Leasing Services Industry
- Max
- 19.57%
- Q3
- 13.92%
- Median
- 5.28%
- Q1
- 3.34%
- Min
- -10.86%
AER’s Return on Invested Capital of 3.17% is in the lower quartile for the Rental & Leasing Services industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
CAT
15.16%
Agricultural - Machinery Industry
- Max
- 16.38%
- Q3
- 9.58%
- Median
- 7.00%
- Q1
- 2.90%
- Min
- -5.40%
In the upper quartile for the Agricultural - Machinery industry, CAT’s Return on Invested Capital of 15.16% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AER
26.77%
Rental & Leasing Services Industry
- Max
- 26.77%
- Q3
- 17.31%
- Median
- 5.12%
- Q1
- -0.51%
- Min
- -19.03%
A Net Profit Margin of 26.77% places AER in the upper quartile for the Rental & Leasing Services industry, signifying strong profitability and more effective cost management than most of its peers.
CAT
15.71%
Agricultural - Machinery Industry
- Max
- 15.71%
- Q3
- 7.25%
- Median
- 4.16%
- Q1
- 0.06%
- Min
- -5.40%
A Net Profit Margin of 15.71% places CAT in the upper quartile for the Agricultural - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AER
32.92%
Rental & Leasing Services Industry
- Max
- 53.21%
- Q3
- 29.93%
- Median
- 16.64%
- Q1
- 8.88%
- Min
- -12.57%
An Operating Profit Margin of 32.92% places AER in the upper quartile for the Rental & Leasing Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
CAT
19.59%
Agricultural - Machinery Industry
- Max
- 21.13%
- Q3
- 13.26%
- Median
- 6.04%
- Q1
- 2.32%
- Min
- -3.90%
An Operating Profit Margin of 19.59% places CAT in the upper quartile for the Agricultural - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AER | CAT |
|---|---|---|
| Return on Equity (TTM) | 12.55% | 53.66% |
| Return on Assets (TTM) | 2.95% | 11.70% |
| Return on Invested Capital (TTM) | 3.17% | 15.16% |
| Net Profit Margin (TTM) | 26.77% | 15.71% |
| Operating Profit Margin (TTM) | 32.92% | 19.59% |
| Gross Profit Margin (TTM) | 38.97% | 35.49% |
Financial Strength
Current Ratio
AER
3.12
Rental & Leasing Services Industry
- Max
- 7.05
- Q3
- 3.95
- Median
- 1.87
- Q1
- 0.85
- Min
- 0.64
AER’s Current Ratio of 3.12 aligns with the median group of the Rental & Leasing Services industry, indicating that its short-term liquidity is in line with its sector peers.
CAT
1.32
Agricultural - Machinery Industry
- Max
- 3.64
- Q3
- 2.69
- Median
- 1.85
- Q1
- 1.64
- Min
- 1.32
CAT’s Current Ratio of 1.32 falls into the lower quartile for the Agricultural - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AER
2.69
Rental & Leasing Services Industry
- Max
- 3.95
- Q3
- 3.50
- Median
- 2.49
- Q1
- 0.92
- Min
- 0.00
AER’s Debt-to-Equity Ratio of 2.69 is typical for the Rental & Leasing Services industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
CAT
2.14
Agricultural - Machinery Industry
- Max
- 1.40
- Q3
- 1.03
- Median
- 0.81
- Q1
- 0.43
- Min
- 0.16
With a Debt-to-Equity Ratio of 2.14, CAT operates with exceptionally high leverage compared to the Agricultural - Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
AER
5.50
Rental & Leasing Services Industry
- Max
- 6.53
- Q3
- 5.33
- Median
- 2.35
- Q1
- 1.41
- Min
- -1.09
AER’s Interest Coverage Ratio of 5.50 is in the upper quartile for the Rental & Leasing Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
CAT
25.55
Agricultural - Machinery Industry
- Max
- 9.19
- Q3
- 8.08
- Median
- 3.73
- Q1
- 1.70
- Min
- -7.20
With an Interest Coverage Ratio of 25.55, CAT demonstrates a superior capacity to service its debt, placing it well above the typical range for the Agricultural - Machinery industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | AER | CAT |
|---|---|---|
| Current Ratio (TTM) | 3.12 | 1.32 |
| Quick Ratio (TTM) | 3.06 | 0.77 |
| Debt-to-Equity Ratio (TTM) | 2.69 | 2.14 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.45 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.63 | 2.27 |
| Interest Coverage Ratio (TTM) | 5.50 | 25.55 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AER and CAT. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AER
0.66%
Rental & Leasing Services Industry
- Max
- 2.29%
- Q3
- 1.60%
- Median
- 0.72%
- Q1
- 0.00%
- Min
- 0.00%
AER’s Dividend Yield of 0.66% is consistent with its peers in the Rental & Leasing Services industry, providing a dividend return that is standard for its sector.
CAT
1.42%
Agricultural - Machinery Industry
- Max
- 4.17%
- Q3
- 1.81%
- Median
- 1.43%
- Q1
- 1.01%
- Min
- 0.00%
CAT’s Dividend Yield of 1.42% is consistent with its peers in the Agricultural - Machinery industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AER
6.80%
Rental & Leasing Services Industry
- Max
- 260.58%
- Q3
- 29.91%
- Median
- 17.33%
- Q1
- 6.80%
- Min
- 0.00%
AER’s Dividend Payout Ratio of 6.80% is within the typical range for the Rental & Leasing Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
CAT
26.88%
Agricultural - Machinery Industry
- Max
- 78.29%
- Q3
- 54.38%
- Median
- 22.45%
- Q1
- 13.94%
- Min
- 0.00%
CAT’s Dividend Payout Ratio of 26.88% is within the typical range for the Agricultural - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AER | CAT |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 1.42% |
| Dividend Payout Ratio (TTM) | 6.80% | 26.88% |
Valuation
Price-to-Earnings Ratio
AER
9.85
Rental & Leasing Services Industry
- Max
- 32.56
- Q3
- 29.28
- Median
- 17.35
- Q1
- 9.97
- Min
- 5.76
In the lower quartile for the Rental & Leasing Services industry, AER’s P/E Ratio of 9.85 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
CAT
19.01
Agricultural - Machinery Industry
- Max
- 36.41
- Q3
- 24.06
- Median
- 18.38
- Q1
- 12.84
- Min
- 7.09
CAT’s P/E Ratio of 19.01 is within the middle range for the Agricultural - Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AER
1.33
Rental & Leasing Services Industry
- Max
- 2.86
- Q3
- 2.33
- Median
- 1.39
- Q1
- 0.91
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Rental & Leasing Services industry.
CAT
2.25
Agricultural - Machinery Industry
- Max
- 3.45
- Q3
- 2.14
- Median
- 1.21
- Q1
- 0.57
- Min
- 0.02
The Forward PEG Ratio is often not a primary valuation metric in the Agricultural - Machinery industry.
Price-to-Sales Ratio
AER
2.56
Rental & Leasing Services Industry
- Max
- 6.35
- Q3
- 3.16
- Median
- 2.03
- Q1
- 0.60
- Min
- 0.25
AER’s P/S Ratio of 2.56 aligns with the market consensus for the Rental & Leasing Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
CAT
2.96
Agricultural - Machinery Industry
- Max
- 3.13
- Q3
- 1.54
- Median
- 0.71
- Q1
- 0.46
- Min
- 0.17
CAT’s P/S Ratio of 2.96 is in the upper echelon for the Agricultural - Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
AER
1.22
Rental & Leasing Services Industry
- Max
- 2.76
- Q3
- 2.65
- Median
- 2.02
- Q1
- 1.37
- Min
- 0.69
AER’s P/B Ratio of 1.22 is in the lower quartile for the Rental & Leasing Services industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
CAT
10.46
Agricultural - Machinery Industry
- Max
- 3.00
- Q3
- 2.77
- Median
- 1.79
- Q1
- 1.38
- Min
- 0.50
At 10.46, CAT’s P/B Ratio is at an extreme premium to the Agricultural - Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AER | CAT |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.85 | 19.01 |
| Forward PEG Ratio (TTM) | 1.33 | 2.25 |
| Price-to-Sales Ratio (P/S, TTM) | 2.56 | 2.96 |
| Price-to-Book Ratio (P/B, TTM) | 1.22 | 10.46 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.80 | 21.80 |
| EV-to-EBITDA (TTM) | 12.54 | 14.37 |
| EV-to-Sales (TTM) | 8.22 | 3.51 |