Head to Head Analysis: Willis Lease Finance (NASDAQ:WLFC) vs. Greenbrier Companies (NYSE:GBX)

Willis Lease Finance (NASDAQ:WLFC) and Greenbrier Companies (NYSE:GBX) are both small-cap transportation companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Earnings & Valuation

This table compares Willis Lease Finance and Greenbrier Companies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Willis Lease Finance	$569.22 million	1.83	$108.61 million	$14.60	9.31
Greenbrier Companies	$3.54 billion	0.44	$160.10 million	$7.06	7.21

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

Profitability

This table compares Willis Lease Finance and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willis Lease Finance	17.21%	19.69%	3.34%
Greenbrier Companies	6.48%	14.56%	5.43%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Willis Lease Finance and Greenbrier Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willis Lease Finance	0	0	0	0	0.00
Greenbrier Companies	1	0	1	0	2.00

Greenbrier Companies has a consensus target price of $59.50, indicating a potential upside of 16.92%. Given Greenbrier Companies’ stronger consensus rating and higher possible upside, analysts plainly believe Greenbrier Companies is more favorable than Willis Lease Finance.

Insider & Institutional Ownership

93.7% of Willis Lease Finance shares are owned by institutional investors. Comparatively, 95.6% of Greenbrier Companies shares are owned by institutional investors. 57.0% of Willis Lease Finance shares are owned by insiders. Comparatively, 1.8% of Greenbrier Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Willis Lease Finance has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.

Dividends

Willis Lease Finance pays an annual dividend of $1.00 per share and has a dividend yield of 0.7%. Greenbrier Companies pays an annual dividend of $1.28 per share and has a dividend yield of 2.5%. Willis Lease Finance pays out 6.8% of its earnings in the form of a dividend. Greenbrier Companies pays out 18.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Greenbrier Companies has raised its dividend for 3 consecutive years. Greenbrier Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Greenbrier Companies beats Willis Lease Finance on 10 of the 17 factors compared between the two stocks.

About Willis Lease Finance

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars. The Maintenance Services segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts. The Leasing & Management Services segment offers operating leases and per diem leases for a fleet of approximately 13,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar re-marketing. This segment provides management services for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. It serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.