Seek Returns logo

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

Updated on

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

Company Overview

AER’s market capitalization of 20.46 billion USD is substantially larger than ITT’s 12.68 billion USD, indicating a significant difference in their market valuations.

With betas of 1.40 for AER and 1.36 for ITT, both stocks show similar sensitivity to overall market movements.

SymbolAERITT
Company NameAerCap Holdings N.V.ITT Inc.
CountryIEUS
SectorIndustrialsIndustrials
IndustryRental & Leasing ServicesIndustrial - Machinery
CEOAengus KellyLuca Savi
Price115.89 USD161.13 USD
Market Cap20.46 billion USD12.68 billion USD
Beta1.401.36
ExchangeNYSENYSE
IPO DateNovember 21, 2006December 15, 1995
ADRNoNo

Historical Performance

This chart compares the performance of AER and ITT 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. ITT: Growth of a $10,000 investment over the past one year.

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.

ITT

18.98%

Industrial - Machinery Industry

Max
36.51%
Q3
18.65%
Median
12.08%
Q1
4.75%
Min
-15.57%

In the upper quartile for the Industrial - Machinery industry, ITT’s Return on Equity of 18.98% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AER vs. ITT: A comparison of their ROE against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

13.84%

Industrial - Machinery Industry

Max
22.35%
Q3
12.64%
Median
9.33%
Q1
5.32%
Min
-5.42%

In the upper quartile for the Industrial - Machinery industry, ITT’s Return on Invested Capital of 13.84% signifies a highly effective use of its capital to generate profits when compared to its peers.

AER vs. ITT: A comparison of their ROIC against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

14.19%

Industrial - Machinery Industry

Max
28.85%
Q3
15.25%
Median
10.02%
Q1
5.33%
Min
-8.75%

ITT’s Net Profit Margin of 14.19% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

AER vs. ITT: A comparison of their Net Profit Margin against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

18.58%

Industrial - Machinery Industry

Max
28.19%
Q3
19.04%
Median
14.62%
Q1
8.13%
Min
-5.76%

ITT’s Operating Profit Margin of 18.58% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

AER vs. ITT: A comparison of their Operating Margin against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

Profitability at a Glance

SymbolAERITT
Return on Equity (TTM)12.55%18.98%
Return on Assets (TTM)2.95%10.67%
Return on Invested Capital (TTM)3.17%13.84%
Net Profit Margin (TTM)26.77%14.19%
Operating Profit Margin (TTM)32.92%18.58%
Gross Profit Margin (TTM)38.97%34.76%

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.

ITT

1.19

Industrial - Machinery Industry

Max
4.18
Q3
2.75
Median
2.07
Q1
1.46
Min
0.46

ITT’s Current Ratio of 1.19 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

AER vs. ITT: A comparison of their Current Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

0.30

Industrial - Machinery Industry

Max
1.46
Q3
0.73
Median
0.48
Q1
0.17
Min
0.00

ITT’s Debt-to-Equity Ratio of 0.30 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

AER vs. ITT: A comparison of their D/E Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

17.67

Industrial - Machinery Industry

Max
28.91
Q3
14.99
Median
9.11
Q1
3.95
Min
-11.30

ITT’s Interest Coverage Ratio of 17.67 is in the upper quartile for the Industrial - Machinery industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

AER vs. ITT: A comparison of their Interest Coverage against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

Financial Strength at a Glance

SymbolAERITT
Current Ratio (TTM)3.121.19
Quick Ratio (TTM)3.060.80
Debt-to-Equity Ratio (TTM)2.690.30
Debt-to-Asset Ratio (TTM)0.640.17
Net Debt-to-EBITDA Ratio (TTM)8.630.50
Interest Coverage Ratio (TTM)5.5017.67

Growth

The following charts compare key year-over-year (YoY) growth metrics for AER and ITT. These metrics are based on the companies’ annual financial reports.

Revenue Growth

AER vs. ITT: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

AER vs. ITT: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

AER vs. ITT: A comparison of their annual year-over-year 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.

ITT

0.83%

Industrial - Machinery Industry

Max
4.40%
Q3
1.47%
Median
0.74%
Q1
0.00%
Min
0.00%

ITT’s Dividend Yield of 0.83% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.

AER vs. ITT: A comparison of their Dividend Yield against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

20.73%

Industrial - Machinery Industry

Max
78.48%
Q3
36.22%
Median
20.24%
Q1
0.00%
Min
0.00%

ITT’s Dividend Payout Ratio of 20.73% is within the typical range for the Industrial - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

AER vs. ITT: A comparison of their Payout Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

Dividend at a Glance

SymbolAERITT
Dividend Yield (TTM)0.66%0.83%
Dividend Payout Ratio (TTM)6.80%20.73%

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.

ITT

25.40

Industrial - Machinery Industry

Max
47.62
Q3
34.41
Median
27.36
Q1
21.62
Min
10.96

ITT’s P/E Ratio of 25.40 is within the middle range for the Industrial - 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.

AER vs. ITT: A comparison of their P/E Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

2.46

Industrial - Machinery Industry

Max
6.15
Q3
3.53
Median
2.82
Q1
1.71
Min
0.09

The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.

AER vs. ITT: A comparison of their Forward PEG Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

3.49

Industrial - Machinery Industry

Max
8.37
Q3
4.59
Median
3.34
Q1
1.83
Min
0.32

ITT’s P/S Ratio of 3.49 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AER vs. ITT: A comparison of their P/S Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

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.

ITT

4.71

Industrial - Machinery Industry

Max
7.49
Q3
5.01
Median
3.41
Q1
2.45
Min
0.01

ITT’s P/B Ratio of 4.71 is within the conventional range for the Industrial - Machinery 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. ITT: A comparison of their P/B Ratio against their respective Rental & Leasing Services and Industrial - Machinery industry benchmarks.

Valuation at a Glance

SymbolAERITT
Price-to-Earnings Ratio (P/E, TTM)9.8525.40
Forward PEG Ratio (TTM)1.332.46
Price-to-Sales Ratio (P/S, TTM)2.563.49
Price-to-Book Ratio (P/B, TTM)1.224.71
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-9.8026.16
EV-to-EBITDA (TTM)12.5416.66
EV-to-Sales (TTM)8.223.60