Critical Comparison: Willis Lease Finance (WLFC) and Its Rivals

Willis Lease Finance (NASDAQ:WLFC) is one of 14 public companies in the “TRANS – EQP&LSNG” industry, but how does it contrast to its competitors? We will compare Willis Lease Finance to similar companies based on the strength of its risk, dividends, earnings, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Willis Lease Finance and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Willis Lease Finance	18.77%	21.75%	3.61%
Willis Lease Finance Competitors	10.41%	5.23%	2.85%

Volatility and Risk

Willis Lease Finance has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Willis Lease Finance’s competitors have a beta of 1.02, meaning that their average share price is 2% more volatile than the S&P 500.

Institutional and Insider Ownership

93.7% of Willis Lease Finance shares are held by institutional investors. Comparatively, 86.4% of shares of all “TRANS – EQP&LSNG” companies are held by institutional investors. 57.0% of Willis Lease Finance shares are held by company insiders. Comparatively, 10.7% of shares of all “TRANS – EQP&LSNG” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Willis Lease Finance pays an annual dividend of $1.00 per share and has a dividend yield of 0.8%. Willis Lease Finance pays out 5.9% of its earnings in the form of a dividend. As a group, “TRANS – EQP&LSNG” companies pay a dividend yield of 1.5% and pay out 20.4% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Willis Lease Finance and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Willis Lease Finance	$569.22 million	$108.61 million	7.72
Willis Lease Finance Competitors	$3.71 billion	$360.72 million	20.76

Willis Lease Finance’s competitors have higher revenue and earnings than Willis Lease Finance. Willis Lease Finance is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Willis Lease Finance and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willis Lease Finance	0	1	0	0	2.00
Willis Lease Finance Competitors	130	571	997	66	2.57

As a group, “TRANS – EQP&LSNG” companies have a potential upside of 11.04%. Given Willis Lease Finance’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Willis Lease Finance has less favorable growth aspects than its competitors.

Summary

Willis Lease Finance competitors beat Willis Lease Finance on 8 of the 15 factors compared.

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.