Contrasting Aercap (NYSE:AER) and Core & Main (NYSE:CNM)

Core & Main (NYSE:CNM) and Aercap (NYSE:AER) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Volatility & Risk

Core & Main has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Aercap has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Institutional and Insider Ownership

94.2% of Core & Main shares are owned by institutional investors. Comparatively, 96.4% of Aercap shares are owned by institutional investors. 1.5% of Core & Main shares are owned by insiders. Comparatively, 0.5% of Aercap shares are owned by 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.

Analyst Ratings

This is a summary of recent recommendations for Core & Main and Aercap, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Core & Main	0	6	7	0	2.54
Aercap	0	1	9	1	3.00

Core & Main currently has a consensus price target of $56.70, indicating a potential upside of 34.84%. Aercap has a consensus price target of $172.56, indicating a potential upside of 19.60%. Given Core & Main’s higher possible upside, equities research analysts clearly believe Core & Main is more favorable than Aercap.

Valuation and Earnings

This table compares Core & Main and Aercap”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Core & Main	$7.65 billion	1.06	$441.00 million	$2.36	17.82
Aercap	$8.96 billion	2.69	$3.75 billion	$20.32	7.10

Aercap has higher revenue and earnings than Core & Main. Aercap is trading at a lower price-to-earnings ratio than Core & Main, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Core & Main and Aercap’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Core & Main	5.87%	26.17%	8.58%
Aercap	37.85%	17.60%	4.51%

Summary

Aercap beats Core & Main on 10 of the 15 factors compared between the two stocks.

About Core & Main

Core & Main, Inc. is a specialty distributor focused on water, wastewater, storm drainage and fire protection products, and related services. The company provides infrastructure solutions to municipalities, private water companies and professional contractors across municipal, non-residential, and residential end markets, nationwide. The company was founded in 1874 and is headquartered in St. Louis, MO.

About Aercap

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft and engines; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. In addition, the company provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. Further, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. The company had a portfolio of owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.