AER vs. RTO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and RTO, 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 RTO’s 12.26 billion USD, indicating a significant difference in their market valuations.
AER’s beta of 1.40 points to significantly higher volatility compared to RTO (beta: 0.35), suggesting AER has greater potential for both gains and losses relative to market movements.
RTO is an American Depositary Receipt (ADR), allowing U.S. investors direct exposure to its non-U.S. operations. AER, on the other hand, is a domestic entity.
| Symbol | AER | RTO |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Rentokil Initial plc |
| Country | IE | GB |
| Sector | Industrials | Industrials |
| Industry | Rental & Leasing Services | Specialty Business Services |
| CEO | Aengus Kelly | Andrew M. Ransom |
| Price | 115.89 USD | 24.11 USD |
| Market Cap | 20.46 billion USD | 12.26 billion USD |
| Beta | 1.40 | 0.35 |
| Exchange | NYSE | NYSE |
| IPO Date | November 21, 2006 | November 18, 1996 |
| ADR | No | Yes |
Historical Performance
This chart compares the performance of AER and RTO 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.
RTO
7.32%
Specialty Business Services Industry
- Max
- 30.24%
- Q3
- 17.20%
- Median
- 7.32%
- Q1
- 4.37%
- Min
- -13.44%
RTO’s Return on Equity of 7.32% is on par with the norm for the Specialty Business Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
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.
RTO
5.43%
Specialty Business Services Industry
- Max
- 22.69%
- Q3
- 10.02%
- Median
- 5.30%
- Q1
- 1.55%
- Min
- -1.58%
RTO’s Return on Invested Capital of 5.43% is in line with the norm for the Specialty Business Services industry, reflecting a standard level of efficiency in generating profits from its capital base.
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.
RTO
5.65%
Specialty Business Services Industry
- Max
- 17.53%
- Q3
- 11.60%
- Median
- 5.65%
- Q1
- 1.65%
- Min
- -5.21%
RTO’s Net Profit Margin of 5.65% is aligned with the median group of its peers in the Specialty Business Services 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.
RTO
12.29%
Specialty Business Services Industry
- Max
- 29.40%
- Q3
- 16.52%
- Median
- 5.78%
- Q1
- 1.54%
- Min
- -5.17%
RTO’s Operating Profit Margin of 12.29% is around the midpoint for the Specialty Business Services industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AER | RTO |
|---|---|---|
| Return on Equity (TTM) | 12.55% | 7.32% |
| Return on Assets (TTM) | 2.95% | 2.91% |
| Return on Invested Capital (TTM) | 3.17% | 5.43% |
| Net Profit Margin (TTM) | 26.77% | 5.65% |
| Operating Profit Margin (TTM) | 32.92% | 12.29% |
| Gross Profit Margin (TTM) | 38.97% | 12.75% |
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.
RTO
0.81
Specialty Business Services Industry
- Max
- 2.21
- Q3
- 1.84
- Median
- 1.52
- Q1
- 0.94
- Min
- 0.26
RTO’s Current Ratio of 0.81 falls into the lower quartile for the Specialty Business Services 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.
RTO
0.97
Specialty Business Services Industry
- Max
- 1.02
- Q3
- 0.93
- Median
- 0.62
- Q1
- 0.22
- Min
- 0.03
RTO’s leverage is in the upper quartile of the Specialty Business Services industry, with a Debt-to-Equity Ratio of 0.97. 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.
RTO
3.39
Specialty Business Services Industry
- Max
- 15.61
- Q3
- 6.91
- Median
- 3.29
- Q1
- 0.04
- Min
- -8.58
RTO’s Interest Coverage Ratio of 3.39 is positioned comfortably within the norm for the Specialty Business Services industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AER | RTO |
|---|---|---|
| Current Ratio (TTM) | 3.12 | 0.81 |
| Quick Ratio (TTM) | 3.06 | 0.72 |
| Debt-to-Equity Ratio (TTM) | 2.69 | 0.97 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.39 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.63 | 3.48 |
| Interest Coverage Ratio (TTM) | 5.50 | 3.39 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AER and RTO. 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.
RTO
1.91%
Specialty Business Services Industry
- Max
- 4.40%
- Q3
- 1.37%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.91%, RTO offers a more attractive income stream than most of its peers in the Specialty Business Services industry, signaling a strong commitment to shareholder returns.
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.
RTO
74.59%
Specialty Business Services Industry
- Max
- 79.38%
- Q3
- 51.62%
- Median
- 23.75%
- Q1
- 1.08%
- Min
- 0.00%
RTO’s Dividend Payout Ratio of 74.59% is in the upper quartile for the Specialty Business Services industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AER | RTO |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 1.91% |
| Dividend Payout Ratio (TTM) | 6.80% | 74.59% |
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.
RTO
28.75
Specialty Business Services Industry
- Max
- 52.23
- Q3
- 42.83
- Median
- 32.04
- Q1
- 16.00
- Min
- 2.24
RTO’s P/E Ratio of 28.75 is within the middle range for the Specialty Business Services 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.
RTO
3.27
Specialty Business Services Industry
- Max
- 4.93
- Q3
- 3.34
- Median
- 2.19
- Q1
- 0.14
- Min
- 0.06
RTO’s Forward PEG Ratio of 3.27 is within the middle range of its peers in the Specialty Business Services 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.
RTO
1.62
Specialty Business Services Industry
- Max
- 6.26
- Q3
- 3.60
- Median
- 1.90
- Q1
- 0.73
- Min
- 0.34
RTO’s P/S Ratio of 1.62 aligns with the market consensus for the Specialty Business Services 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.
RTO
2.09
Specialty Business Services Industry
- Max
- 3.69
- Q3
- 3.69
- Median
- 2.13
- Q1
- 1.55
- Min
- 0.59
The P/B Ratio is often not a primary valuation metric for the Specialty Business Services industry.
Valuation at a Glance
| Symbol | AER | RTO |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.85 | 28.75 |
| Forward PEG Ratio (TTM) | 1.33 | 3.27 |
| Price-to-Sales Ratio (P/S, TTM) | 2.56 | 1.62 |
| Price-to-Book Ratio (P/B, TTM) | 1.22 | 2.09 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.80 | 17.05 |
| EV-to-EBITDA (TTM) | 12.54 | 13.09 |
| EV-to-Sales (TTM) | 8.22 | 2.21 |