Financial Survey: Elbit Systems (NASDAQ:ESLT) vs. AerSale (NASDAQ:ASLE)

AerSale (NASDAQ:ASLE) and Elbit Systems (NASDAQ:ESLT) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Risk and Volatility

AerSale has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Elbit Systems has a beta of 0.22, meaning that its share price is 78% less volatile than the S&P 500.

Profitability

This table compares AerSale and Elbit Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerSale	1.73%	2.10%	1.40%
Elbit Systems	5.91%	15.04%	4.69%

Institutional & Insider Ownership

69.5% of AerSale shares are held by institutional investors. Comparatively, 17.9% of Elbit Systems shares are held by institutional investors. 19.2% of AerSale shares are held by insiders. Comparatively, 0.8% of Elbit Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares AerSale and Elbit Systems”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	1.01	$5.85 million	$0.13	57.00
Elbit Systems	$6.83 billion	N/A	$321.14 million	$9.84	68.17

Elbit Systems has higher revenue and earnings than AerSale. AerSale is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and price targets for AerSale and Elbit Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	1	3	0	0	1.75
Elbit Systems	0	3	2	0	2.40

AerSale presently has a consensus target price of $7.00, indicating a potential downside of 5.53%. Elbit Systems has a consensus target price of $550.33, indicating a potential downside of 17.96%. Given AerSale’s higher probable upside, equities analysts plainly believe AerSale is more favorable than Elbit Systems.

Summary

Elbit Systems beats AerSale on 10 of the 13 factors compared between the two stocks.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

About Elbit Systems

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.