Critical Analysis: FTAI Aviation (FTAI) & Its Rivals

FTAI Aviation (NASDAQ:FTAI) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare FTAI Aviation to related companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.

Dividends

FTAI Aviation pays an annual dividend of $1.80 per share and has a dividend yield of 0.8%. FTAI Aviation pays out 39.1% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.0% and pay out 38.9% 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.

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	-241.78%	-110.89%	-4.37%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	$501.06 million	47.35
FTAI Aviation Competitors	$8.48 billion	$577.31 million	31.72

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.

Volatility & Risk

FTAI Aviation has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, FTAI Aviation’s peers have a beta of 1.29, meaning that their average stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations 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	2014	7987	12282	537	2.50

FTAI Aviation presently has a consensus price target of $315.56, suggesting a potential upside of 44.89%. As a group, “Aerospace & Defense” companies have a potential upside of 28.49%. Given FTAI Aviation’s stronger consensus rating and higher possible upside, analysts plainly believe FTAI Aviation is more favorable than its peers.

Insider and Institutional Ownership

89.0% of FTAI Aviation shares are held by institutional investors. Comparatively, 50.1% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.4% of FTAI Aviation shares are held by insiders. Comparatively, 12.1% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

FTAI Aviation beats its peers on 9 of the 15 factors compared.

About FTAI Aviation

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.