Analyzing FTAI Aviation (FTAI) and The Competition

FTAI Aviation (NASDAQ:FTAI) is one of 230 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare FTAI Aviation to similar companies based on the strength of its analyst recommendations, risk, dividends, valuation, profitability, earnings and institutional ownership.

Valuation and Earnings

This table compares FTAI Aviation and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	$501.06 million	42.67
FTAI Aviation Competitors	$8.42 billion	$572.47 million	26.95

FTAI Aviation’s competitors have higher revenue and earnings than FTAI Aviation. FTAI Aviation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

FTAI Aviation has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, FTAI Aviation’s competitors have a beta of 1.28, meaning that their average share price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

89.0% of FTAI Aviation shares are owned by institutional investors. Comparatively, 49.4% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.4% of FTAI Aviation shares are owned by insiders. Comparatively, 12.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares FTAI Aviation and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Aviation	15.94%	139.59%	11.26%
FTAI Aviation Competitors	-305.55%	-31.46%	-4.73%

Dividends

FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. FTAI Aviation pays out 43.5% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.1% of their earnings in the form of a dividend. FTAI Aviation lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for FTAI Aviation and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	9	0	2.82
FTAI Aviation Competitors	2076	8039	12368	542	2.49

FTAI Aviation currently has a consensus target price of $320.11, indicating a potential upside of 63.09%. As a group, “Aerospace & Defense” companies have a potential upside of 29.81%. Given FTAI Aviation’s stronger consensus rating and higher possible upside, equities analysts plainly believe FTAI Aviation is more favorable than its competitors.

Summary

FTAI Aviation beats its competitors on 9 of the 15 factors compared.

FTAI Aviation Company Profile

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.