CAI International (NYSE: CAI) and Aaron's (NYSE:AAN) are both transportation companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Risk & Volatility
CAI International has a beta of 2.23, indicating that its share price is 123% more volatile than the S&P 500. Comparatively, Aaron's has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.
This table compares CAI International and Aaron's’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares CAI International and Aaron's’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CAI International||$348.39 million||1.21||$72.06 million||$2.87||7.19|
|Aaron's||$3.38 billion||0.97||$292.53 million||$2.56||18.28|
Aaron's has higher revenue and earnings than CAI International. CAI International is trading at a lower price-to-earnings ratio than Aaron's, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
74.5% of CAI International shares are owned by institutional investors. 24.5% of CAI International shares are owned by company insiders. Comparatively, 1.9% of Aaron's shares are owned by company 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.
Aaron's pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. CAI International does not pay a dividend. Aaron's pays out 4.7% of its earnings in the form of a dividend. Aaron's has increased its dividend for 11 consecutive years.
This is a summary of current ratings and recommmendations for CAI International and Aaron's, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CAI International presently has a consensus target price of $35.25, suggesting a potential upside of 70.78%. Aaron's has a consensus target price of $46.50, suggesting a potential downside of 0.64%. Given CAI International’s stronger consensus rating and higher probable upside, equities analysts plainly believe CAI International is more favorable than Aaron's.
CAI International Company Profile
CAI International, Inc. operates as transportation finance and logistics company in the United States and internationally. The company operates through three segments: Container Leasing, Rail Leasing, and Logistics. It leases, re-leases, and disposes equipment; and contracts for the repair, repositioning, and storage of equipment. The company leases its container equipment to lessees under long-term, short-term, and finance leases. It also sells containers; and provides container management services to third-party investors, as well as sells used containers. In addition, the company leases railcars consisting of box cars for paper and forest products; covered hoppers for grain, cement, sand, plastic pallets, and other industrial products; general purpose tank cars that are used to transport food-grade, and other liquid and gaseous commodities; gondolas for coal and steel; and general service flat cars. Further, it offers domestic and international logistics services, including intermodal, truck brokerage, port drayage, warehousing, international ocean freight, and freight forwarding, as well as the arrangement and coordination of international air freight services and customs brokerage; international export and import services for full container loads, less than container loads, perishable cargo, project cargo, and airfreight; and transportation management services and technology solutions, including shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, and Web-based shipment visibility. As of December 31, 2017, the company had a container fleet comprised 1,282,739 cost equivalent units; and an owned fleet of 7,172 railcars in North America. The company was formerly known as Container Applications International, Inc. and changed its name to CAI International, Inc. in February 2007. CAI International, Inc. was founded in 1989 and is headquartered in San Francisco, California.
Aaron's Company Profile
Aaron’s, Inc. (Aaron’s) is an omnichannel provider of lease-purchase solutions. The Company engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, home appliances and accessories through its Company-operated and franchised stores in Canada, as well as its e-commerce platform, Aarons.com. Its segments include Sales and Lease Ownership, Progressive Finance Holdings, LLC (Progressive), Dent-A-Med, Inc., doing business as the HELPcard (DAMI), Franchise and Manufacturing. Its stores carry brands, such as Samsung, Frigidaire, Hewlett-Packard, LG, Whirlpool, Simmons, Philips, Ashley and Magnavox. As of December 31, 2016, it had 1,864 Aaron’s stores, consisted of 1,165 Company-operated stores in 28 states, the District of Columbia and Canada, and 699 independently-owned franchised stores in 46 states and Canada. It owns trademarks and trade names used in business, including Progressive, Dent-A-Med, the HELPcard and Woodhaven Furniture Industries.
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