Air Lease (NYSE: AL) and Navios Maritime (NYSE:NM) are both transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, institutional ownership, risk and analyst recommendations.

Dividends

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Air Lease pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Navios Maritime does not pay a dividend. Air Lease pays out 5.9% of its earnings in the form of a dividend. Air Lease has increased its dividend for 4 consecutive years.

Institutional & Insider Ownership

90.3% of Air Lease shares are held by institutional investors. Comparatively, 23.6% of Navios Maritime shares are held by institutional investors. 9.8% of Air Lease shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Air Lease has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Navios Maritime has a beta of 2.62, meaning that its share price is 162% more volatile than the S&P 500.

Earnings and Valuation

This table compares Air Lease and Navios Maritime’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Lease $1.45 billion 3.14 $756.15 million $6.82 6.45
Navios Maritime $463.05 million 0.29 -$165.91 million ($1.51) -0.75

Air Lease has higher revenue and earnings than Navios Maritime. Navios Maritime is trading at a lower price-to-earnings ratio than Air Lease, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Air Lease and Navios Maritime’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Lease 49.87% 10.91% 2.70%
Navios Maritime -37.28% -15.58% -4.17%

Analyst Ratings

This is a summary of current ratings and target prices for Air Lease and Navios Maritime, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Lease 0 2 8 0 2.80
Navios Maritime 1 0 2 0 2.33

Air Lease presently has a consensus price target of $53.94, indicating a potential upside of 22.60%. Navios Maritime has a consensus price target of $1.63, indicating a potential upside of 43.81%. Given Navios Maritime’s higher probable upside, analysts plainly believe Navios Maritime is more favorable than Air Lease.

Summary

Air Lease beats Navios Maritime on 14 of the 17 factors compared between the two stocks.

About Air Lease

Air Lease Corporation is an aircraft leasing company. The Company is principally engaged in purchasing new commercial jet transport aircraft directly from aircraft manufacturers, such as The Boeing Company (Boeing) and Airbus S.A.S. (Airbus), and leasing those aircraft to airlines across the world. Along with its leasing activities, the Company sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies and airlines. The Company also provides fleet management services to investors and owners of aircraft portfolios for a management fee. The Company provides aircraft to airline customers in various markets, such as Asia, the Pacific Rim, Latin America, the Middle East, Europe, Africa and North America. As of December 31, 2016, the Company had 237 owned aircraft and 30 aircraft in its managed fleet portfolio.

About Navios Maritime

Navios Maritime Holdings Inc. (Navios Holdings) is a global, vertically integrated seaborne shipping and logistics company. The Company is focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. It operates through two segments: the Dry bulk Vessel Operations and the Logistics Business. The Dry bulk Vessel Operations segment consists of the transportation and handling of bulk cargoes through the ownership, operation and trading of vessels, freight and forward freight agreements (FFAs). The Logistics Business segment consists of port terminal business, barge business and cabotage business in the Hidrovia region of South America. Navios Holdings also offers commercial and technical management services to the fleets of Navios Maritime Partners L.P., Navios Maritime Acquisition Corporation, Navios Maritime Midstream Partners L.P., Navios Europe Inc. and Navios Europe (II) Inc.

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