Fly Leasing (FLY) & GATX Corporation (GATX) Critical Analysis
Fly Leasing (NYSE: FLY) and GATX Corporation (NYSE:GATX) are both financials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitabiliy, analyst recommendations and risk.
This is a breakdown of current ratings and recommmendations for Fly Leasing and GATX Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fly Leasing presently has a consensus target price of $17.42, suggesting a potential upside of 29.98%. GATX Corporation has a consensus target price of $46.33, suggesting a potential downside of 28.60%. Given Fly Leasing’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fly Leasing is more favorable than GATX Corporation.
Institutional and Insider Ownership
51.8% of Fly Leasing shares are owned by institutional investors. 3.5% of GATX Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Fly Leasing and GATX Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Fly Leasing and GATX Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fly Leasing||$340.75 million||1.26||-$31.51 million||($0.98)||-13.67|
|GATX Corporation||$1.40 billion||1.81||$661.40 million||$6.06||10.71|
GATX Corporation has higher revenue and earnings than Fly Leasing. Fly Leasing is trading at a lower price-to-earnings ratio than GATX Corporation, indicating that it is currently the more affordable of the two stocks.
GATX Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.6%. Fly Leasing does not pay a dividend. GATX Corporation pays out 27.7% of its earnings in the form of a dividend. Fly Leasing has raised its dividend for 5 consecutive years.
Risk & Volatility
Fly Leasing has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, GATX Corporation has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.
GATX Corporation beats Fly Leasing on 11 of the 17 factors compared between the two stocks.
About Fly Leasing
Fly Leasing Limited is engaged in purchasing commercial aircraft, which it leases under multi-year contracts to a range of airlines throughout the world. The Company primarily acquires aircraft by entering into purchase and leaseback transactions with airlines for new aircraft; purchasing portfolios, which consists of aircraft of various types and ages, and acquiring individual aircraft. As of December 31, 2016, the Company had 76 aircraft in its portfolio, of which 75 were held for operating lease and one was recorded as an investment in finance lease. As of December 31, 2016, its portfolio included 65 narrow-body passenger aircraft (including one freighter) and 11 wide-body passenger aircraft (including two freighters). Its aircraft are leased under multi-year contracts to various group of airlines in Europe; Asia and South Pacific; Mexico, South and Central America; North America, and Middle East and Africa. Its portfolio includes aircrafts, such as B737-700 and A320-200.
About GATX Corporation
GATX Corporation is a global railcar lessor, owning fleets in North America, Europe, and Asia. In addition, the Company operates fleet of the United States-flagged vessels on the Great Lakes and jointly with Rolls-Royce plc, it owns aircraft spare engine lease portfolios in the world. It operates through four business segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. As of December 31, 2016, it owned fleet of approximately 146,300 railcars. It offers customers leasing, maintenance, asset, financial, and management expertise. It leases tank cars, freight cars, and locomotives in North America, tank cars and freight cars in Europe and freight cars in India and Russia. As of December 31, 2016, it also had an ownership interest in an affiliate investment that owned approximately 2,200 railcars, and it managed approximately 400 railcars for other third-party owners.
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