AER vs. UNP: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and UNP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
UNP’s market capitalization of 141.17 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 1.05 for UNP, both stocks show similar sensitivity to overall market movements.
| Symbol | AER | UNP |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Union Pacific Corporation |
| Country | IE | US |
| Sector | Industrials | Industrials |
| Industry | Rental & Leasing Services | Railroads |
| CEO | Aengus Kelly | Vincenzo James Vena |
| Price | 115.89 USD | 236.28 USD |
| Market Cap | 20.46 billion USD | 141.17 billion USD |
| Beta | 1.40 | 1.05 |
| Exchange | NYSE | NYSE |
| IPO Date | November 21, 2006 | January 2, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AER and UNP 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.
UNP
40.80%
Railroads Industry
- Max
- 40.80%
- Q3
- 24.36%
- Median
- 18.32%
- Q1
- 11.84%
- Min
- 8.37%
In the upper quartile for the Railroads industry, UNP’s Return on Equity of 40.80% 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.
UNP
11.47%
Railroads Industry
- Max
- 11.47%
- Q3
- 9.66%
- Median
- 9.08%
- Q1
- 7.36%
- Min
- 4.32%
In the upper quartile for the Railroads industry, UNP’s Return on Invested Capital of 11.47% 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.
UNP
27.77%
Railroads Industry
- Max
- 27.77%
- Q3
- 26.50%
- Median
- 24.33%
- Q1
- 9.34%
- Min
- 4.79%
A Net Profit Margin of 27.77% places UNP in the upper quartile for the Railroads 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.
UNP
39.99%
Railroads Industry
- Max
- 41.08%
- Q3
- 37.86%
- Median
- 35.40%
- Q1
- 15.99%
- Min
- 10.85%
An Operating Profit Margin of 39.99% places UNP in the upper quartile for the Railroads 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 | UNP |
|---|---|---|
| Return on Equity (TTM) | 12.55% | 40.80% |
| Return on Assets (TTM) | 2.95% | 9.83% |
| Return on Invested Capital (TTM) | 3.17% | 11.47% |
| Net Profit Margin (TTM) | 26.77% | 27.77% |
| Operating Profit Margin (TTM) | 32.92% | 39.99% |
| Gross Profit Margin (TTM) | 38.97% | 45.51% |
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.
UNP
0.73
Railroads Industry
- Max
- 1.97
- Q3
- 1.41
- Median
- 0.85
- Q1
- 0.77
- Min
- 0.62
UNP’s Current Ratio of 0.73 falls into the lower quartile for the Railroads 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.
UNP
2.11
Railroads Industry
- Max
- 2.11
- Q3
- 1.44
- Median
- 1.19
- Q1
- 0.72
- Min
- 0.39
UNP’s leverage is in the upper quartile of the Railroads industry, with a Debt-to-Equity Ratio of 2.11. 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.
UNP
7.65
Railroads Industry
- Max
- 8.45
- Q3
- 7.16
- Median
- 6.40
- Q1
- 5.53
- Min
- 4.30
UNP’s Interest Coverage Ratio of 7.65 is in the upper quartile for the Railroads industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AER | UNP |
|---|---|---|
| Current Ratio (TTM) | 3.12 | 0.73 |
| Quick Ratio (TTM) | 3.06 | 0.61 |
| Debt-to-Equity Ratio (TTM) | 2.69 | 2.11 |
| Debt-to-Asset Ratio (TTM) | 0.64 | 0.50 |
| Net Debt-to-EBITDA Ratio (TTM) | 8.63 | 2.60 |
| Interest Coverage Ratio (TTM) | 5.50 | 7.65 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AER and UNP. 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.
UNP
2.27%
Railroads Industry
- Max
- 4.30%
- Q3
- 2.64%
- Median
- 2.21%
- Q1
- 1.33%
- Min
- 0.43%
UNP’s Dividend Yield of 2.27% is consistent with its peers in the Railroads 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.
UNP
47.86%
Railroads Industry
- Max
- 69.30%
- Q3
- 47.83%
- Median
- 32.93%
- Q1
- 18.85%
- Min
- 13.29%
UNP’s Dividend Payout Ratio of 47.86% is in the upper quartile for the Railroads 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 | UNP |
|---|---|---|
| Dividend Yield (TTM) | 0.66% | 2.27% |
| Dividend Payout Ratio (TTM) | 6.80% | 47.86% |
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.
UNP
21.09
Railroads Industry
- Max
- 26.01
- Q3
- 22.00
- Median
- 19.48
- Q1
- 17.09
- Min
- 16.09
UNP’s P/E Ratio of 21.09 is within the middle range for the Railroads 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.
UNP
1.79
Railroads Industry
- Max
- 1.85
- Q3
- 1.84
- Median
- 1.79
- Q1
- 1.59
- Min
- 1.52
The Forward PEG Ratio is often not a primary valuation metric in the Railroads industry.
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.
UNP
5.82
Railroads Industry
- Max
- 6.74
- Q3
- 5.30
- Median
- 4.55
- Q1
- 2.73
- Min
- 0.42
UNP’s P/S Ratio of 5.82 is in the upper echelon for the Railroads 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.
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.
UNP
8.85
Railroads Industry
- Max
- 5.11
- Q3
- 4.36
- Median
- 3.70
- Q1
- 1.98
- Min
- 1.00
At 8.85, UNP’s P/B Ratio is at an extreme premium to the Railroads 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 | UNP |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 9.85 | 21.09 |
| Forward PEG Ratio (TTM) | 1.33 | 1.79 |
| Price-to-Sales Ratio (P/S, TTM) | 2.56 | 5.82 |
| Price-to-Book Ratio (P/B, TTM) | 1.22 | 8.85 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -9.80 | 24.04 |
| EV-to-EBITDA (TTM) | 12.54 | 13.92 |
| EV-to-Sales (TTM) | 8.22 | 7.16 |