Critical Comparison: Applied Industrial Technologies (NYSE:AIT) and AerSale (NASDAQ:ASLE)

Applied Industrial Technologies (NYSE:AITGet Rating) and AerSale (NASDAQ:ASLEGet Rating) are both industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Valuation & Earnings

This table compares Applied Industrial Technologies and AerSale’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Applied Industrial Technologies $3.24 billion 1.10 $144.76 million $6.08 15.30
AerSale $340.44 million 2.00 $36.12 million $0.87 15.10

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

Volatility and Risk

Applied Industrial Technologies has a beta of 1.28, suggesting that its stock price is 28% more volatile than the S&P 500. Comparatively, AerSale has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Applied Industrial Technologies and AerSale, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Applied Industrial Technologies 0 0 2 0 3.00
AerSale 0 1 0 0 2.00

Applied Industrial Technologies presently has a consensus price target of $116.50, indicating a potential upside of 25.26%. Given Applied Industrial Technologies’ stronger consensus rating and higher probable upside, equities analysts clearly believe Applied Industrial Technologies is more favorable than AerSale.

Profitability

This table compares Applied Industrial Technologies and AerSale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Applied Industrial Technologies 6.52% 23.58% 10.35%
AerSale 10.70% 12.86% 10.89%

Institutional & Insider Ownership

92.9% of Applied Industrial Technologies shares are owned by institutional investors. Comparatively, 69.0% of AerSale shares are owned by institutional investors. 2.4% of Applied Industrial Technologies shares are owned by company insiders. Comparatively, 79.2% of AerSale shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Applied Industrial Technologies beats AerSale on 10 of the 14 factors compared between the two stocks.

Applied Industrial Technologies Company Profile (Get Rating)

Applied Industrial Technologies, Inc. distributes industrial products in North America, Australia, New Zealand, and Singapore. It operates through two segments, Service Center Based Distribution, and Fluid Power & Flow Control. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides equipment repair and technical support services. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as to government entities. Applied Industrial Technologies, Inc. was founded in 1923 and is headquartered in Cleveland, Ohio.

AerSale Company Profile (Get Rating)

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 also 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.

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