Analyzing FTAI Aviation (FTAI) and Its Peers

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

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 39.5% of their earnings in the form of a dividend. FTAI Aviation lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares FTAI Aviation and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	$501.06 million	42.76
FTAI Aviation Competitors	$8.48 billion	$572.47 million	26.68

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

Profitability

This table compares FTAI Aviation and its peers’ 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%

Institutional and 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 company insiders. Comparatively, 12.1% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for FTAI Aviation and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	9	0	2.82
FTAI Aviation Competitors	2077	8042	12371	542	2.49

FTAI Aviation presently has a consensus price target of $320.11, indicating a potential upside of 62.75%. As a group, “Aerospace & Defense” companies have a potential upside of 30.85%. Given FTAI Aviation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe FTAI Aviation is more favorable than its peers.

Summary

FTAI Aviation beats its peers 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.