Critical Survey: Nabtesco (OTCMKTS:NCTKF) vs. Air Lease (NYSE:AL)

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

Insider & Institutional Ownership

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

Earnings & Valuation

This table compares Nabtesco 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
Nabtesco	$2.14 billion	1.28	$66.79 million	$0.78	29.19
Air Lease	$2.73 billion	2.60	$427.70 million	$8.24	7.71

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

Volatility and Risk

Nabtesco has a beta of -0.06, suggesting that its share price is 106% less volatile than the S&P 500. Comparatively, Air Lease has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Nabtesco and Air Lease, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabtesco	0	0	0	0	0.00
Air Lease	1	3	4	0	2.38

Air Lease has a consensus price target of $60.29, indicating a potential downside of 5.15%. Given Air Lease’s stronger consensus rating and higher possible upside, analysts clearly believe Air Lease is more favorable than Nabtesco.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nabtesco	3.35%	5.01%	3.24%
Air Lease	34.04%	7.99%	1.92%

Summary

Air Lease beats Nabtesco on 12 of the 14 factors compared between the two stocks.

About Nabtesco

Nabtesco Corporation manufactures and sells equipment in the industrial, daily life, and environmental fields in Japan and internationally. The company offers precision reduction gears for industrial robots’ joints; hydraulic equipment, such as traveling unit for crawlers, control valve for mini excavators, and swing unit for hydraulic excavators; railroad vehicle equipment, such as railroad vehicle brake systems, test equipment, door operating units, brake shoes, seat turning equipment, and snow removal devices; and aircraft equipment comprising flight control actuation systems and high voltage electric power distribution units. It also provides air dryers and wedge brake chambers for commercial vehicles, and hydraulic clutch master cylinders for passenger vehicles; engine remote control systems for marine vessels; automatic doors and platform doors for buildings; automatic filters/sealers for retort pouch foods; and prosthetic knee joints and rollator with a speed control system. In addition, the company offers condition monitoring with fail-safe equipment and diagnostic services for wind turbine. Nabtesco Corporation was incorporated in 2003 and is headquartered in Tokyo, Japan.

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.