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

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

Company Profile

SymbolAERWSO
Company NameAerCap Holdings N.V.Watsco, Inc.
CountryIrelandUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryTrading Companies & DistributorsTrading Companies & Distributors
Market Capitalization21.73 billion USD16.29 billion USD
ExchangeNYSENYSE
Listing DateNovember 21, 2006June 7, 1984
Security TypeCommon StockCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolAERWSO
5-Day Price Return-1.92%-3.59%
13-Week Price Return6.83%-16.19%
26-Week Price Return23.51%-19.51%
52-Week Price Return29.00%-18.55%
Month-to-Date Return0.69%-1.95%
Year-to-Date Return27.31%-16.35%
10-Day Avg. Volume1.26M0.51M
3-Month Avg. Volume1.40M0.39M
3-Month Volatility18.28%28.65%
Beta1.141.02

Profitability

Return on Equity (TTM)

AER

17.07%

Trading Companies & Distributors Industry

Max
32.99%
Q3
19.66%
Median
13.72%
Q1
9.74%
Min
-0.34%

AER’s Return on Equity of 17.07% is on par with the norm for the Trading Companies & Distributors industry, indicating its profitability relative to shareholder equity is typical for the sector.

WSO

19.73%

Trading Companies & Distributors Industry

Max
32.99%
Q3
19.66%
Median
13.72%
Q1
9.74%
Min
-0.34%

In the upper quartile for the Trading Companies & Distributors industry, WSO’s Return on Equity of 19.73% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

AER vs. WSO: A comparison of their Return on Equity (TTM) against the Trading Companies & Distributors industry benchmark.

Net Profit Margin (TTM)

AER

39.91%

Trading Companies & Distributors Industry

Max
16.11%
Q3
9.48%
Median
5.89%
Q1
3.68%
Min
-1.09%

AER’s Net Profit Margin of 39.91% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

WSO

7.08%

Trading Companies & Distributors Industry

Max
16.11%
Q3
9.48%
Median
5.89%
Q1
3.68%
Min
-1.09%

WSO’s Net Profit Margin of 7.08% is aligned with the median group of its peers in the Trading Companies & Distributors industry. This indicates its ability to convert revenue into profit is typical for the sector.

AER vs. WSO: A comparison of their Net Profit Margin (TTM) against the Trading Companies & Distributors industry benchmark.

Operating Profit Margin (TTM)

AER

63.19%

Trading Companies & Distributors Industry

Max
26.26%
Q3
14.59%
Median
7.05%
Q1
4.94%
Min
-8.06%

AER’s Operating Profit Margin of 63.19% is exceptionally high, placing it well above the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.

WSO

10.26%

Trading Companies & Distributors Industry

Max
26.26%
Q3
14.59%
Median
7.05%
Q1
4.94%
Min
-8.06%

WSO’s Operating Profit Margin of 10.26% is around the midpoint for the Trading Companies & Distributors industry, indicating that its efficiency in managing core business operations is typical for the sector.

AER vs. WSO: A comparison of their Operating Profit Margin (TTM) against the Trading Companies & Distributors industry benchmark.

Profitability at a Glance

SymbolAERWSO
Return on Equity (TTM)17.07%19.73%
Return on Assets (TTM)4.05%11.69%
Net Profit Margin (TTM)39.91%7.08%
Operating Profit Margin (TTM)63.19%10.26%
Gross Profit Margin (TTM)91.01%27.54%

Financial Strength

Current Ratio (MRQ)

AER

1.50

Trading Companies & Distributors Industry

Max
3.32
Q3
2.27
Median
1.60
Q1
1.41
Min
0.26

AER’s Current Ratio of 1.50 aligns with the median group of the Trading Companies & Distributors industry, indicating that its short-term liquidity is in line with its sector peers.

WSO

3.08

Trading Companies & Distributors Industry

Max
3.32
Q3
2.27
Median
1.60
Q1
1.41
Min
0.26

WSO’s Current Ratio of 3.08 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.

AER vs. WSO: A comparison of their Current Ratio (MRQ) against the Trading Companies & Distributors industry benchmark.

Debt-to-Equity Ratio (MRQ)

AER

2.57

Trading Companies & Distributors Industry

Max
1.93
Q3
1.24
Median
0.79
Q1
0.61
Min
0.01

With a Debt-to-Equity Ratio of 2.57, AER operates with exceptionally high leverage compared to the Trading Companies & Distributors industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

WSO

0.01

Trading Companies & Distributors Industry

Max
1.93
Q3
1.24
Median
0.79
Q1
0.61
Min
0.01

Falling into the lower quartile for the Trading Companies & Distributors industry, WSO’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

AER vs. WSO: A comparison of their Debt-to-Equity Ratio (MRQ) against the Trading Companies & Distributors industry benchmark.

Interest Coverage Ratio (TTM)

AER

2.14

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.67
Q1
2.04
Min
-1.67

AER’s Interest Coverage Ratio of 2.14 is positioned comfortably within the norm for the Trading Companies & Distributors industry, indicating a standard and healthy capacity to cover its interest payments.

WSO

140.00

Trading Companies & Distributors Industry

Max
15.13
Q3
7.93
Median
5.67
Q1
2.04
Min
-1.67

With an Interest Coverage Ratio of 140.00, WSO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.

AER vs. WSO: A comparison of their Interest Coverage Ratio (TTM) against the Trading Companies & Distributors industry benchmark.

Financial Strength at a Glance

SymbolAERWSO
Current Ratio (MRQ)1.503.08
Quick Ratio (MRQ)0.621.26
Debt-to-Equity Ratio (MRQ)2.570.01
Interest Coverage Ratio (TTM)2.14140.00

Growth

Revenue Growth

AER vs. WSO: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

AER vs. WSO: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

AER

0.89%

Trading Companies & Distributors Industry

Max
5.25%
Q3
2.95%
Median
2.06%
Q1
1.11%
Min
0.00%

AER’s Dividend Yield of 0.89% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

WSO

2.78%

Trading Companies & Distributors Industry

Max
5.25%
Q3
2.95%
Median
2.06%
Q1
1.11%
Min
0.00%

WSO’s Dividend Yield of 2.78% is consistent with its peers in the Trading Companies & Distributors industry, providing a dividend return that is standard for its sector.

AER vs. WSO: A comparison of their Dividend Yield (TTM) against the Trading Companies & Distributors industry benchmark.

Dividend Payout Ratio (TTM)

AER

6.56%

Trading Companies & Distributors Industry

Max
136.12%
Q3
71.34%
Median
47.49%
Q1
22.56%
Min
0.00%

AER’s Dividend Payout Ratio of 6.56% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

WSO

84.37%

Trading Companies & Distributors Industry

Max
136.12%
Q3
71.34%
Median
47.49%
Q1
22.56%
Min
0.00%

WSO’s Dividend Payout Ratio of 84.37% is in the upper quartile for the Trading Companies & Distributors 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.

AER vs. WSO: A comparison of their Dividend Payout Ratio (TTM) against the Trading Companies & Distributors industry benchmark.

Dividend at a Glance

SymbolAERWSO
Dividend Yield (TTM)0.89%2.78%
Dividend Payout Ratio (TTM)6.56%84.37%

Valuation

Price-to-Earnings Ratio (TTM)

AER

7.41

Trading Companies & Distributors Industry

Max
42.69
Q3
25.21
Median
16.99
Q1
13.13
Min
5.35

In the lower quartile for the Trading Companies & Distributors industry, AER’s P/E Ratio of 7.41 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

WSO

30.40

Trading Companies & Distributors Industry

Max
42.69
Q3
25.21
Median
16.99
Q1
13.13
Min
5.35

A P/E Ratio of 30.40 places WSO in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

AER vs. WSO: A comparison of their Price-to-Earnings Ratio (TTM) against the Trading Companies & Distributors industry benchmark.

Price-to-Sales Ratio (TTM)

AER

2.96

Trading Companies & Distributors Industry

Max
4.90
Q3
2.71
Median
1.06
Q1
0.70
Min
0.30

AER’s P/S Ratio of 2.96 is in the upper echelon for the Trading Companies & Distributors 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.

WSO

2.15

Trading Companies & Distributors Industry

Max
4.90
Q3
2.71
Median
1.06
Q1
0.70
Min
0.30

WSO’s P/S Ratio of 2.15 aligns with the market consensus for the Trading Companies & Distributors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

AER vs. WSO: A comparison of their Price-to-Sales Ratio (TTM) against the Trading Companies & Distributors industry benchmark.

Price-to-Book Ratio (MRQ)

AER

1.18

Trading Companies & Distributors Industry

Max
7.55
Q3
4.63
Median
2.09
Q1
1.30
Min
0.31

AER’s P/B Ratio of 1.18 is in the lower quartile for the Trading Companies & Distributors 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.

WSO

6.47

Trading Companies & Distributors Industry

Max
7.55
Q3
4.63
Median
2.09
Q1
1.30
Min
0.31

WSO’s P/B Ratio of 6.47 is in the upper tier for the Trading Companies & Distributors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

AER vs. WSO: A comparison of their Price-to-Book Ratio (MRQ) against the Trading Companies & Distributors industry benchmark.

Valuation at a Glance

SymbolAERWSO
Price-to-Earnings Ratio (TTM)7.4130.40
Price-to-Sales Ratio (TTM)2.962.15
Price-to-Book Ratio (MRQ)1.186.47
Price-to-Free Cash Flow Ratio (TTM)25.3521.75