AerCap Holdings NV (AER)vsCaterpillar Inc (CAT)
AER
AerCap Holdings NV
$138.11
+0.71%
INDUSTRIALS · Cap: $22.48B
CAT
Caterpillar Inc
$890.11
+9.88%
INDUSTRIALS · Cap: $414.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Caterpillar Inc generates 694% more annual revenue ($67.59B vs $8.52B). AER leads profitability with a 44.0% profit margin vs 13.1%. AER appears more attractively valued with a PEG of 0.80. AER earns a higher WallStSmart Score of 79/100 (B+).
AER
Strong Buy79
out of 100
Grade: B+
CAT
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-42.8%
Fair Value
$103.81
Current Price
$138.11
$34.30 premium
Intrinsic value data unavailable for CAT.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 44 of every $100 in revenue as profit
Strong operational efficiency at 48.0%
Every $100 of equity generates 21 in profit
Growing faster than its price suggests
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
18.0% revenue growth
Generating 2.2B in free cash flow
Areas to Watch
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Trading at 19.4x book value
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : AER
The strongest argument for AER centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 44.0% and operating margin at 48.0%. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bull Case : CAT
The strongest argument for CAT centers on Market Cap, Return on Equity, Revenue Growth. Revenue growth of 18.0% demonstrates continued momentum.
Bear Case : AER
The primary concerns for AER are Free Cash Flow, Altman Z-Score.
Bear Case : CAT
The primary concerns for CAT are PEG Ratio, Price/Book, Piotroski F-Score. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 2.03 is elevated, increasing financial risk.
Key Dynamics to Monitor
AER profiles as a mature stock while CAT is a growth play — different risk/reward profiles.
CAT carries more volatility with a beta of 1.52 — expect wider price swings.
CAT is growing revenue faster at 18.0% — sustainability is the question.
CAT generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
AER scores higher overall (79/100 vs 55/100), backed by strong 44.0% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
AerCap Holdings NV
INDUSTRIALS · RENTAL & LEASING SERVICES · USA
AerCap Holdings NV is engaged in the leasing, financing, sale and management of commercial aircraft and engines in mainland China, Hong Kong, Macau, the United States, Ireland and internationally. The company is headquartered in Dublin, Ireland.
Caterpillar Inc
INDUSTRIALS · FARM & HEAVY CONSTRUCTION MACHINERY · USA
Caterpillar Inc. (often shortened to CAT) is an American Fortune 100 corporation that designs, develops, engineers, manufactures, markets, and sells machinery, engines, financial products, and insurance to customers via a worldwide dealer network.
Visit Website →Compare with Other RENTAL & LEASING SERVICES Stocks
Want to dig deeper into these stocks?