Head-To-Head Analysis: Willis Lease Finance (WLFC) & The Competition

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

Profitability

This table compares Willis Lease Finance and its peers’ 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	10.91%	4.90%	2.78%

Insider & Institutional Ownership

93.7% of Willis Lease Finance shares are owned by institutional investors. Comparatively, 86.4% of shares of all “TRANS – EQP&LSNG” companies are owned by institutional investors. 53.8% of Willis Lease Finance shares are owned by insiders. Comparatively, 10.3% of shares of all “TRANS – EQP&LSNG” companies are owned 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.

Volatility and Risk

Willis Lease Finance has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500. Comparatively, Willis Lease Finance’s peers have a beta of 1.22, suggesting that their average share price is 22% more volatile than the S&P 500.

Dividends

Willis Lease Finance pays an annual dividend of $1.60 per share and has a dividend yield of 1.3%. Willis Lease Finance pays out 9.6% 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 20.0% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Willis Lease Finance and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Willis Lease Finance	0	1	0	0	2.00
Willis Lease Finance Competitors	132	579	1005	66	2.56

As a group, “TRANS – EQP&LSNG” companies have a potential upside of 11.54%. Given Willis Lease Finance’s peers stronger consensus rating and higher probable upside, analysts clearly believe Willis Lease Finance has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Willis Lease Finance and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Willis Lease Finance	$689.42 million	$108.61 million	7.30
Willis Lease Finance Competitors	$3.78 billion	$360.72 million	6.19

Willis Lease Finance’s peers have higher revenue and earnings than Willis Lease Finance. Willis Lease Finance 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.

Summary

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

Willis Lease Finance Company Profile

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.