Aercap Story

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AER -- USA Stock  

USD 59.83  0.46  0.76%

As many of us are excited about industrials space, we will review both, Aercap Holdings and Grupo Aeroportuario as a potential short-term opportunity. We are going to discuss some of the competitive aspects of both Aercap and Grupo.
Published over a month ago
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Are retail investors buying Aercap Holdings (NYSE:AER) or Grupo Aeroportuario?
By analyzing existing basic indicators between Aercap Holdings and Grupo, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Grupo with a short position in Aercap Holdings. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Aercap Holdings has an asset utilization ratio of 10.75 percent. This connotes that the company is making $0.11 for each dollar of assets. An increasing asset utilization means that Aercap Holdings NV is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Aercap or Grupo is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Aercap Holdings's Liquidity

Aercap Holdings financial leverage refers to using borrowed capital as a funding source to finance Aercap Holdings NV ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aercap Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Aercap Holdings's total debt and its cash.

Correlation Between Aercap and Grupo Aeroportuario Del

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Aercap Holdings together with similar or unrelated positions with a negative correlation. For example, you can also add Grupo Aeroportuario to your portfolio. If Grupo Aeroportuario is not perfectly correlated to Aercap Holdings it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Aercap Holdings for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between AER and ASR for more information.

Note

Are you currently holding both Aercap Holdings and Grupo Aeroportuario in your portfolio?
Please note if you are using this as a pair-trade strategy between Aercap Holdings and Grupo Aeroportuario, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

What is driving Aercap Holdings Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Aercap Holdings revenue. Based on the latest financial disclosure, Aercap Holdings NV reported 4.72 B of revenue. This is 34.91% higher than that of the Industrials sector and 203.15% higher than that of the Airports & Air Services industry. The revenue for all United States stocks is 49.97% higher than that of Aercap Holdings NV. As for Grupo Aeroportuario we see revenue of 774.31 M, which is 50.27% lower than that of the Airports & Air Services

Aercap4.72 Billion
Sector1.56 Billion
Grupo774.31 Million
4.7 B
Aercap
1.6 B
Sector
Grupo

Another small fall for Aercap Holdings

Latest skewness is at -0.11.
As of the 2nd of March, Aercap Holdings shows the Risk Adjusted Performance of 0.1071, downside deviation of 3.28, and Mean Deviation of 2.61. Aercap Holdings NV technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Aercap Holdings NV, which can be compared to its rivals. Please confirm Aercap Holdings NV treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Aercap Holdings NV is priced correctly, providing market reflects its regular price of 46.59 per share. Given that Aercap Holdings has jensen alpha of 0.334, we suggest you to validate Aercap Holdings NV's prevailing market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Aercap Holdings

While few other entities in the airports & air services industry are either recovering or due for a correction, Aercap may not be as strong as the others in terms of longer-term growth potentials. While some short-term oriented retail investors may not share our view, we believe it may be a good time to trade new shares of Aercap.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Aercap Holdings NV. Please refer to our Terms of Use for any information regarding our disclosure principles.

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