Analyzing Alabama Aircraft Industries (OTCMKTS:AAIIQ) and AerSale (NASDAQ:ASLE)

AerSale (NASDAQ:ASLE) and Alabama Aircraft Industries (OTCMKTS:AAIIQ) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AerSale and Alabama Aircraft Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	1	3	0	0	1.75
Alabama Aircraft Industries	0	0	0	0	0.00

AerSale currently has a consensus price target of $7.00, indicating a potential downside of 7.28%. Given Alabama Aircraft Industries’ higher possible upside, analysts plainly believe Alabama Aircraft Industries is more favorable than AerSale.

Profitability

This table compares AerSale and Alabama Aircraft Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerSale	1.73%	2.10%	1.40%
Alabama Aircraft Industries	N/A	N/A	N/A

Valuation and Earnings

This table compares AerSale and Alabama Aircraft Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	1.03	$5.85 million	$0.13	58.08
Alabama Aircraft Industries	N/A	N/A	N/A	N/A	N/A

AerSale has higher revenue and earnings than Alabama Aircraft Industries.

Institutional & Insider Ownership

69.5% of AerSale shares are held by institutional investors. 19.2% of AerSale shares are held by company insiders. Comparatively, 38.0% of Alabama Aircraft Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

AerSale has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Alabama Aircraft Industries has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Summary

AerSale beats Alabama Aircraft Industries on 6 of the 9 factors compared between the two stocks.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

About Alabama Aircraft Industries

Alabama Aircraft Industries, Inc provides aircraft maintenance and modification services to the United States government, foreign governments, and military customers. Its services include maintenance and modification of military transport, tanker, and petrol aircraft airframes; and aircraft maintenance and modification services, such as complete airframe maintenance and repair, and custom air frame design and modification. The company’s services also comprise scheduled and unscheduled maintenance; interior refurbishment and reconfiguration; lavatory, galley, airstair, and auxiliary fuel tank installations; aging aircraft inspection; structural and accident damage repair; manufacturing and parts fabrication; composite repair; service bulletin and AD compliance; component repair and overhaul; EPA approved stripping and painting; CPCP; non-destructive testing; avionics upgrades and installation; and FAA repair station RJ1R454K. Its principal services performed under military contracts are programmed depot maintenance, aircraft modifications, aircraft stripping and painting, rewiring, parts fabrication, engineering support services, system integration of component upgrades, and modification of fixed wing aircrafts. In addition, the company offers airframe corrosion prevention and control, rewiring, and component overhauls, as well as structural, avionics, and other systems modification services. It provides its services directly as a prime contractor or indirectly as a sub- contractor. The company was formerly known as Pemco Aviation Group, Inc. and changed its name to Alabama Aircraft Industries Inc. in September 2007. Alabama Aircraft Industries, Inc was founded in 1983 and is based in Birmingham, Alabama. On Nov 3, 2011, the voluntary petition of Alabama Aircraft Industries, Inc., along with its affiliates, for reorganization under Ch 11 was converted to Ch 7. It had filed for Chapter 11 bankruptcy on Feb 15, 2011.