AER vs. LECO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and LECO, 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 LECO’s 12.07 billion USD, indicating a significant difference in their market valuations.
With betas of 1.40 for AER and 1.21 for LECO, both stocks show similar sensitivity to overall market movements.
| Symbol | AER | LECO |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Lincoln Electric Holdings, Inc. |
| Country | IE | US |
| Sector | Industrials | Industrials |
| Industry | Rental & Leasing Services | Manufacturing - Tools & Accessories |
| CEO | Aengus Kelly | Steven B. Hedlund |
| Price | 115.89 USD | 216.28 USD |
| Market Cap | 20.46 billion USD | 12.07 billion USD |
| Beta | 1.40 | 1.21 |
| Exchange | NYSE | NASDAQ |
| IPO Date | November 21, 2006 | April 7, 1994 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AER and LECO 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.
LECO
34.68%
Manufacturing - Tools & Accessories Industry
- Max
- 34.68%
- Q3
- 20.63%
- Median
- 10.07%
- Q1
- 7.35%
- Min
- 1.56%
In the upper quartile for the Manufacturing - Tools & Accessories industry, LECO’s Return on Equity of 34.68% 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.
LECO
18.96%
Manufacturing - Tools & Accessories Industry
- Max
- 18.96%
- Q3
- 14.59%
- Median
- 7.53%
- Q1
- 6.50%
- Min
- 2.74%
In the upper quartile for the Manufacturing - Tools & Accessories industry, LECO’s Return on Invested Capital of 18.96% 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.
LECO
11.44%
Manufacturing - Tools & Accessories Industry
- Max
- 21.42%
- Q3
- 12.34%
- Median
- 8.01%
- Q1
- 4.68%
- Min
- 1.24%
LECO’s Net Profit Margin of 11.44% is aligned with the median group of its peers in the Manufacturing - Tools & Accessories industry. This indicates its ability to convert revenue into profit is typical for the sector.
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.
LECO
16.61%
Manufacturing - Tools & Accessories Industry
- Max
- 27.46%
- Q3
- 18.11%
- Median
- 11.96%
- Q1
- 8.53%
- Min
- 6.01%
LECO’s Operating Profit Margin of 16.61% is around the midpoint for the Manufacturing - Tools & Accessories industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AER | LECO |
|---|---|---|
| Return on Equity (TTM) | 12.55% | 34.68% |
| Return on Assets (TTM) | 2.95% | 12.72% |
| Return on Invested Capital (TTM) | 3.17% | 18.96% |
| Net Profit Margin (TTM) | 26.77% | 11.44% |
| Operating Profit Margin (TTM) | 32.92% | 16.61% |
| Gross Profit Margin (TTM) | 38.97% | 36.45% |
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.
LECO
1.78
Manufacturing - Tools & Accessories Industry
- Max
- 4.14
- Q3
- 3.17
- Median
- 2.45
- Q1
- 1.81
- Min
- 1.10
LECO’s Current Ratio of 1.78 falls into the lower quartile for the Manufacturing - Tools & Accessories 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.
LECO
0.94
Manufacturing - Tools & Accessories Industry
- Max
- 0.94
- Q3
- 0.78
- Median
- 0.72
- Q1
- 0.31
- Min
- 0.05
LECO’s leverage is in the upper quartile of the Manufacturing - Tools & Accessories industry, with a Debt-to-Equity Ratio of 0.94. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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.
LECO
14.51
Manufacturing - Tools & Accessories Industry
- Max
- 14.51
- Q3
- 10.02
- Median
- 6.60
- Q1
- 5.24
- Min
- 1.53
LECO’s Interest Coverage Ratio of 14.51 is in the upper quartile for the Manufacturing - Tools & Accessories industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AER | LECO |
|---|---|---|
| Current Ratio (TTM) | 3.12 | 1.78 |
| Quick Ratio (TTM) | 3.06 | 1.19 |
| Debt-to-Equity Ratio (TTM) | 2.69 | 0.94 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.35 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.63 | 1.17 |
| Interest Coverage Ratio (TTM) | 5.50 | 14.51 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AER and LECO. 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.
LECO
1.37%
Manufacturing - Tools & Accessories Industry
- Max
- 4.85%
- Q3
- 2.87%
- Median
- 2.00%
- Q1
- 1.05%
- Min
- 0.00%
LECO’s Dividend Yield of 1.37% is consistent with its peers in the Manufacturing - Tools & Accessories 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.
LECO
35.53%
Manufacturing - Tools & Accessories Industry
- Max
- 138.27%
- Q3
- 47.32%
- Median
- 36.66%
- Q1
- 23.90%
- Min
- 0.00%
LECO’s Dividend Payout Ratio of 35.53% is within the typical range for the Manufacturing - Tools & Accessories industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AER | LECO |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 1.37% |
| Dividend Payout Ratio (TTM) | 6.80% | 35.53% |
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.
LECO
26.41
Manufacturing - Tools & Accessories Industry
- Max
- 48.52
- Q3
- 33.58
- Median
- 21.58
- Q1
- 16.21
- Min
- 15.65
LECO’s P/E Ratio of 26.41 is within the middle range for the Manufacturing - Tools & Accessories 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.
LECO
4.33
Manufacturing - Tools & Accessories Industry
- Max
- 5.86
- Q3
- 4.35
- Median
- 3.53
- Q1
- 1.63
- Min
- 0.87
LECO’s Forward PEG Ratio of 4.33 is within the middle range of its peers in the Manufacturing - Tools & Accessories industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
LECO
3.00
Manufacturing - Tools & Accessories Industry
- Max
- 3.41
- Q3
- 3.03
- Median
- 1.33
- Q1
- 0.93
- Min
- 0.69
LECO’s P/S Ratio of 3.00 aligns with the market consensus for the Manufacturing - Tools & Accessories industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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.
LECO
9.09
Manufacturing - Tools & Accessories Industry
- Max
- 4.75
- Q3
- 4.14
- Median
- 2.35
- Q1
- 1.37
- Min
- 1.16
At 9.09, LECO’s P/B Ratio is at an extreme premium to the Manufacturing - Tools & Accessories 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 | LECO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.85 | 26.41 |
| Forward PEG Ratio (TTM) | 1.33 | 4.33 |
| Price-to-Sales Ratio (P/S, TTM) | 2.56 | 3.00 |
| Price-to-Book Ratio (P/B, TTM) | 1.22 | 9.09 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.80 | 22.61 |
| EV-to-EBITDA (TTM) | 12.54 | 17.50 |
| EV-to-Sales (TTM) | 8.22 | 3.21 |