AER vs. HON: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and HON, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
HON’s market capitalization of 154.50 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 1.07 for HON, both stocks show similar sensitivity to overall market movements.
| Symbol | AER | HON |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Honeywell International Inc. |
| Country | IE | US |
| Sector | Industrials | Industrials |
| Industry | Rental & Leasing Services | Conglomerates |
| CEO | Aengus Kelly | Vimal M. Kapur |
| Price | 115.89 USD | 240.4 USD |
| Market Cap | 20.46 billion USD | 154.50 billion USD |
| Beta | 1.40 | 1.07 |
| Exchange | NYSE | NASDAQ |
| IPO Date | November 21, 2006 | February 21, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AER and HON 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.
HON
32.32%
Conglomerates Industry
- Max
- 32.32%
- Q3
- 19.13%
- Median
- 1.34%
- Q1
- -7.64%
- Min
- -24.88%
In the upper quartile for the Conglomerates industry, HON’s Return on Equity of 32.32% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
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.
HON
10.56%
Conglomerates Industry
- Max
- 14.84%
- Q3
- 10.21%
- Median
- 2.12%
- Q1
- -1.56%
- Min
- -8.42%
In the upper quartile for the Conglomerates industry, HON’s Return on Invested Capital of 10.56% 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.
HON
14.51%
Conglomerates Industry
- Max
- 17.79%
- Q3
- 8.39%
- Median
- 0.20%
- Q1
- -6.01%
- Min
- -15.20%
A Net Profit Margin of 14.51% places HON in the upper quartile for the Conglomerates 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.
HON
20.46%
Conglomerates Industry
- Max
- 20.46%
- Q3
- 13.14%
- Median
- 4.91%
- Q1
- -3.97%
- Min
- -12.21%
An Operating Profit Margin of 20.46% places HON in the upper quartile for the Conglomerates 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 | HON |
|---|---|---|
| Return on Equity (TTM) | 12.55% | 32.32% |
| Return on Assets (TTM) | 2.95% | 7.57% |
| Return on Invested Capital (TTM) | 3.17% | 10.56% |
| Net Profit Margin (TTM) | 26.77% | 14.51% |
| Operating Profit Margin (TTM) | 32.92% | 20.46% |
| Gross Profit Margin (TTM) | 38.97% | 38.11% |
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.
HON
1.25
Conglomerates Industry
- Max
- 4.07
- Q3
- 2.46
- Median
- 1.62
- Q1
- 1.05
- Min
- 0.85
HON’s Current Ratio of 1.25 aligns with the median group of the Conglomerates industry, indicating that its short-term liquidity is in line with its sector peers.
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.
HON
1.88
Conglomerates Industry
- Max
- 3.15
- Q3
- 1.88
- Median
- 1.37
- Q1
- 0.53
- Min
- 0.08
HON’s Debt-to-Equity Ratio of 1.88 is typical for the Conglomerates industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
HON
7.14
Conglomerates Industry
- Max
- 9.89
- Q3
- 4.13
- Median
- 2.19
- Q1
- -0.55
- Min
- -0.55
HON’s Interest Coverage Ratio of 7.14 is in the upper quartile for the Conglomerates industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AER | HON |
|---|---|---|
| Current Ratio (TTM) | 3.12 | 1.25 |
| Quick Ratio (TTM) | 3.06 | 0.95 |
| Debt-to-Equity Ratio (TTM) | 2.69 | 1.88 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.44 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.63 | 2.43 |
| Interest Coverage Ratio (TTM) | 5.50 | 7.14 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AER and HON. 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.
HON
1.86%
Conglomerates Industry
- Max
- 30.53%
- Q3
- 8.27%
- Median
- 1.92%
- Q1
- 0.96%
- Min
- 0.00%
HON’s Dividend Yield of 1.86% is consistent with its peers in the Conglomerates 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.
HON
51.50%
Conglomerates Industry
- Max
- 1,392.58%
- Q3
- 51.50%
- Median
- 35.38%
- Q1
- 13.88%
- Min
- 0.00%
HON’s Dividend Payout Ratio of 51.50% is within the typical range for the Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AER | HON |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 1.86% |
| Dividend Payout Ratio (TTM) | 6.80% | 51.50% |
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.
HON
27.38
Conglomerates Industry
- Max
- 63.95
- Q3
- 37.12
- Median
- 22.66
- Q1
- 17.80
- Min
- 12.89
HON’s P/E Ratio of 27.38 is within the middle range for the Conglomerates 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.
HON
3.58
Conglomerates Industry
- Max
- 3.39
- Q3
- 2.48
- Median
- 1.54
- Q1
- 1.36
- Min
- 0.00
HON’s Forward PEG Ratio of 3.58 is exceptionally high for the Conglomerates industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
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.
HON
3.94
Conglomerates Industry
- Max
- 3.75
- Q3
- 1.98
- Median
- 0.99
- Q1
- 0.45
- Min
- 0.06
With a P/S Ratio of 3.94, HON trades at a valuation that eclipses even the highest in the Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
HON
8.92
Conglomerates Industry
- Max
- 8.49
- Q3
- 4.09
- Median
- 1.23
- Q1
- 0.97
- Min
- 0.36
At 8.92, HON’s P/B Ratio is at an extreme premium to the Conglomerates 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 | HON |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.85 | 27.38 |
| Forward PEG Ratio (TTM) | 1.33 | 3.58 |
| Price-to-Sales Ratio (P/S, TTM) | 2.56 | 3.94 |
| Price-to-Book Ratio (P/B, TTM) | 1.22 | 8.92 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.80 | 30.51 |
| EV-to-EBITDA (TTM) | 12.54 | 18.60 |
| EV-to-Sales (TTM) | 8.22 | 4.53 |