WallStSmart

AerCap Holdings NV (AER)vsHerc Holdings Inc (HRI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AerCap Holdings NV generates 85% more annual revenue ($8.96B vs $4.86B). AER leads profitability with a 37.9% profit margin vs 1.0%. HRI appears more attractively valued with a PEG of 0.05. AER earns a higher WallStSmart Score of 75/100 (B).

AER

Strong Buy

75

out of 100

Grade: B

Growth: 4.7Profit: 8.5Value: 6.7Quality: 3.5
Piotroski: 6/9Altman Z: 0.88

HRI

Buy

58

out of 100

Grade: C

Growth: 6.0Profit: 4.0Value: 4.7Quality: 2.5
Piotroski: 1/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AERSignificantly Overvalued (-58.1%)

Margin of Safety

-58.1%

Fair Value

$93.75

Current Price

$141.50

$47.75 premium

UndervaluedFair: $93.75Overvalued
HRISignificantly Overvalued (-63.9%)

Margin of Safety

-63.9%

Fair Value

$110.35

Current Price

$140.96

$30.61 premium

UndervaluedFair: $110.35Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AER5 strengths · Avg: 9.6/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
57.5%10/10

Strong operational efficiency at 57.5%

PEG RatioValuation
0.808/10

Growing faster than its price suggests

HRI3 strengths · Avg: 8.7/10
PEG RatioValuation
0.0510/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
20.2%8/10

Revenue surging 20.2% year-over-year

Areas to Watch

AER3 concerns · Avg: 1.7/10
EPS GrowthGrowth
-35.3%2/10

Earnings declined 35.3%

Altman Z-ScoreHealth
0.882/10

Distress zone — elevated risk

Debt/EquityHealth
2.321/10

Elevated debt levels

HRI4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.0%3/10

1.0% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

P/E RatioValuation
86.2x2/10

Premium valuation, high expectations priced in

Return on EquityProfitability
-0.3%2/10

ROE of -0.3% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : AER

The strongest argument for AER centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 57.5%. Revenue growth of 14.9% demonstrates continued momentum.

Bull Case : HRI

The strongest argument for HRI centers on PEG Ratio, Price/Book, Revenue Growth. Revenue growth of 20.2% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.

Bear Case : AER

The primary concerns for AER are EPS Growth, Altman Z-Score, Debt/Equity. Debt-to-equity of 2.32 is elevated, increasing financial risk.

Bear Case : HRI

The primary concerns for HRI are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 86.2x leaves little room for execution misses. Debt-to-equity of 5.01 is elevated, increasing financial risk.

Key Dynamics to Monitor

AER profiles as a mature stock while HRI is a growth play — different risk/reward profiles.

HRI carries more volatility with a beta of 1.86 — expect wider price swings.

HRI is growing revenue faster at 20.2% — sustainability is the question.

AER generates stronger free cash flow (139M), providing more financial flexibility.

Bottom Line

AER scores higher overall (75/100 vs 58/100), backed by strong 37.9% margins and 14.9% revenue growth. 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.

Herc Holdings Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

Herc Holdings Inc. is an equipment rental provider primarily in the United States and internationally. The company is headquartered in Bonita Springs, Florida.

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