Seek Returns logo

AER vs. EMR: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at AER and EMR, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolAEREMR
Company NameAerCap Holdings N.V.Emerson Electric Co.
CountryIrelandUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryTrading Companies & DistributorsElectrical Equipment
Market Capitalization20.64 billion USD73.66 billion USD
ExchangeNYSENYSE
Listing DateNovember 21, 2006June 1, 1972
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of AER and EMR 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.

AER vs. EMR: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolAEREMR
5-Day Price Return2.65%-2.59%
13-Week Price Return1.69%9.46%
26-Week Price Return16.88%4.46%
52-Week Price Return21.89%26.05%
Month-to-Date Return7.91%-10.05%
Year-to-Date Return20.93%5.62%
10-Day Avg. Volume1.40M2.99M
3-Month Avg. Volume1.40M3.16M
3-Month Volatility15.28%20.65%
Beta1.411.31

Profitability

Return on Equity (TTM)

AER

17.07%

Trading Companies & Distributors Industry

Max
32.33%
Q3
19.92%
Median
14.05%
Q1
11.46%
Min
0.91%

AER’s Return on Equity of 17.07% is on par with the norm for the Trading Companies & Distributors industry, indicating its profitability relative to shareholder equity is typical for the sector.

EMR

13.06%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

EMR’s Return on Equity of 13.06% is on par with the norm for the Electrical Equipment industry, indicating its profitability relative to shareholder equity is typical for the sector.

AER vs. EMR: A comparison of their Return on Equity (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Net Profit Margin (TTM)

AER

39.91%

Trading Companies & Distributors Industry

Max
17.73%
Q3
10.81%
Median
6.13%
Q1
4.33%
Min
2.09%

AER’s Net Profit Margin of 39.91% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

EMR

14.92%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

A Net Profit Margin of 14.92% places EMR in the upper quartile for the Electrical Equipment industry, signifying strong profitability and more effective cost management than most of its peers.

AER vs. EMR: A comparison of their Net Profit Margin (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Operating Profit Margin (TTM)

AER

63.19%

Trading Companies & Distributors Industry

Max
25.50%
Q3
15.13%
Median
7.46%
Q1
5.44%
Min
3.55%

AER’s Operating Profit Margin of 63.19% is exceptionally high, placing it well above the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

EMR

17.42%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

An Operating Profit Margin of 17.42% places EMR in the upper quartile for the Electrical Equipment industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

AER vs. EMR: A comparison of their Operating Profit Margin (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Profitability at a Glance

SymbolAEREMR
Return on Equity (TTM)17.07%13.06%
Return on Assets (TTM)4.05%6.19%
Net Profit Margin (TTM)39.91%14.92%
Operating Profit Margin (TTM)63.19%17.42%
Gross Profit Margin (TTM)91.01%52.70%

Financial Strength

Current Ratio (MRQ)

AER

1.50

Trading Companies & Distributors Industry

Max
2.82
Q3
2.13
Median
1.60
Q1
1.43
Min
0.46

AER’s Current Ratio of 1.50 aligns with the median group of the Trading Companies & Distributors industry, indicating that its short-term liquidity is in line with its sector peers.

EMR

0.85

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

EMR’s Current Ratio of 0.85 falls into the lower quartile for the Electrical Equipment industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AER vs. EMR: A comparison of their Current Ratio (MRQ) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

AER

2.57

Trading Companies & Distributors Industry

Max
1.88
Q3
1.18
Median
0.74
Q1
0.54
Min
0.00

With a Debt-to-Equity Ratio of 2.57, AER operates with exceptionally high leverage compared to the Trading Companies & Distributors industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

EMR

0.72

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

EMR’s Debt-to-Equity Ratio of 0.72 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AER vs. EMR: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

AER

2.14

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.75
Q1
2.70
Min
-1.67

In the lower quartile for the Trading Companies & Distributors industry, AER’s Interest Coverage Ratio of 2.14 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

EMR

18.57

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

EMR’s Interest Coverage Ratio of 18.57 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

AER vs. EMR: A comparison of their Interest Coverage Ratio (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Financial Strength at a Glance

SymbolAEREMR
Current Ratio (MRQ)1.500.85
Quick Ratio (MRQ)0.620.63
Debt-to-Equity Ratio (MRQ)2.570.72
Interest Coverage Ratio (TTM)2.1418.57

Growth

Revenue Growth

AER vs. EMR: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AER vs. EMR: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AER

0.95%

Trading Companies & Distributors Industry

Max
4.99%
Q3
3.04%
Median
1.94%
Q1
1.22%
Min
0.00%

AER’s Dividend Yield of 0.95% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

EMR

1.61%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 1.61%, EMR offers a more attractive income stream than most of its peers in the Electrical Equipment industry, signaling a strong commitment to shareholder returns.

AER vs. EMR: A comparison of their Dividend Yield (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

AER

6.56%

Trading Companies & Distributors Industry

Max
95.14%
Q3
62.08%
Median
51.17%
Q1
26.24%
Min
0.00%

AER’s Dividend Payout Ratio of 6.56% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

EMR

45.06%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

EMR’s Dividend Payout Ratio of 45.06% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AER vs. EMR: A comparison of their Dividend Payout Ratio (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Dividend at a Glance

SymbolAEREMR
Dividend Yield (TTM)0.95%1.61%
Dividend Payout Ratio (TTM)6.56%45.06%

Valuation

Price-to-Earnings Ratio (TTM)

AER

6.89

Trading Companies & Distributors Industry

Max
48.55
Q3
26.73
Median
17.17
Q1
10.78
Min
1.62

In the lower quartile for the Trading Companies & Distributors industry, AER’s P/E Ratio of 6.89 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

EMR

27.96

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

EMR’s P/E Ratio of 27.96 is within the middle range for the Electrical Equipment industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

AER vs. EMR: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

AER

2.75

Trading Companies & Distributors Industry

Max
4.88
Q3
2.56
Median
1.02
Q1
0.60
Min
0.29

AER’s P/S Ratio of 2.75 is in the upper echelon for the Trading Companies & Distributors 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.

EMR

4.17

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

EMR’s P/S Ratio of 4.17 is in the upper echelon for the Electrical Equipment 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.

AER vs. EMR: A comparison of their Price-to-Sales Ratio (TTM) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

AER

1.18

Trading Companies & Distributors Industry

Max
8.77
Q3
4.33
Median
2.00
Q1
1.11
Min
0.35

AER’s P/B Ratio of 1.18 is within the conventional range for the Trading Companies & Distributors industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

EMR

3.77

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

EMR’s P/B Ratio of 3.77 is within the conventional range for the Electrical Equipment industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

AER vs. EMR: A comparison of their Price-to-Book Ratio (MRQ) against their respective Trading Companies & Distributors and Electrical Equipment industry benchmarks.

Valuation at a Glance

SymbolAEREMR
Price-to-Earnings Ratio (TTM)6.8927.96
Price-to-Sales Ratio (TTM)2.754.17
Price-to-Book Ratio (MRQ)1.183.77
Price-to-Free Cash Flow Ratio (TTM)23.5727.05