Head to Head Comparison: Trinity Industries (NYSE:TRN) vs. Willis Lease Finance (NASDAQ:WLFC)

Trinity Industries (NYSE:TRN) and Willis Lease Finance (NASDAQ:WLFC) are both transportation companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

86.6% of Trinity Industries shares are owned by institutional investors. Comparatively, 93.7% of Willis Lease Finance shares are owned by institutional investors. 2.0% of Trinity Industries shares are owned by company insiders. Comparatively, 57.0% of Willis Lease Finance shares 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 and Risk

Trinity Industries has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Willis Lease Finance has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Trinity Industries and Willis Lease Finance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trinity Industries	0	2	0	0	2.00
Willis Lease Finance	0	0	0	0	0.00

Trinity Industries currently has a consensus price target of $27.50, indicating a potential downside of 1.16%. Given Trinity Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Trinity Industries is more favorable than Willis Lease Finance.

Profitability

This table compares Trinity Industries and Willis Lease Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trinity Industries	3.83%	8.49%	1.25%
Willis Lease Finance	18.77%	21.75%	3.61%

Dividends

Trinity Industries pays an annual dividend of $1.20 per share and has a dividend yield of 4.3%. Willis Lease Finance pays an annual dividend of $1.00 per share and has a dividend yield of 0.6%. Trinity Industries pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Willis Lease Finance pays out 5.9% of its earnings in the form of a dividend. Trinity Industries has increased its dividend for 16 consecutive years. Trinity Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Trinity Industries and Willis Lease Finance”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trinity Industries	$3.08 billion	0.73	$138.40 million	$1.14	24.41
Willis Lease Finance	$569.22 million	1.85	$108.61 million	$16.82	9.20

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

About Trinity Industries

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2023, it had a fleet of 109,295 railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. The company was incorporated in 1933 and is headquartered in Dallas, Texas.

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.