Critical Comparison: AmeraMex International (OTCMKTS:AMMX) and Air Lease (NYSE:AL)

AmeraMex International (OTCMKTS:AMMX) and Air Lease (NYSE:AL) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares AmeraMex International and Air Lease’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AmeraMex International	-4.63%	-25.15%	-3.85%
Air Lease	34.04%	7.99%	1.92%

Earnings and Valuation

This table compares AmeraMex International and Air Lease”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AmeraMex International	$14.97 million	0.09	-$1.16 million	($0.08)	-1.16
Air Lease	$2.73 billion	2.34	$427.70 million	$8.24	6.94

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

Institutional & Insider Ownership

94.6% of Air Lease shares are owned by institutional investors. 49.4% of AmeraMex International shares are owned by company insiders. Comparatively, 6.6% of Air Lease shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

AmeraMex International has a beta of 0.1, indicating that its stock price is 90% less volatile than the S&P 500. Comparatively, Air Lease has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for AmeraMex International and Air Lease, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AmeraMex International	0	0	0	0	0.00
Air Lease	1	0	4	0	2.60

Air Lease has a consensus price target of $59.50, indicating a potential upside of 4.00%. Given Air Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Air Lease is more favorable than AmeraMex International.

Summary

Air Lease beats AmeraMex International on 13 of the 14 factors compared between the two stocks.

About AmeraMex International

AmeraMex International, Inc. sells, leases, and rents new and refurbished heavy equipment primarily in the United States. Its products are used in light and infrastructure construction, shipping logistics, logging, mining, transportation, commercial farming, and forestry industries. The company also sells parts; and provides repair and maintenance services. It serves customers in the United States, Canada, Latin America, Asia, and Africa. The company was founded in 1989 and is based in Chico, California.

About Air Lease

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet aircraft to airlines worldwide. It sells aircraft from its fleet to third parties, including other leasing companies, financial services companies, airlines, and other investors. The company provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2023, it owned a fleet of 463 aircraft, including 345 narrowbody aircraft and 118 widebody aircraft. Air Lease Corporation was incorporated in 2010 and is headquartered in Los Angeles, California.