Upbound Group (NASDAQ:UPBD – Get Rating) and Air Lease (NYSE:AL – Get Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Institutional and Insider Ownership
86.1% of Upbound Group shares are held by institutional investors. Comparatively, 88.8% of Air Lease shares are held by institutional investors. 11.0% of Upbound Group shares are held by company insiders. Comparatively, 6.5% of Air Lease shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Upbound Group and Air Lease, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Upbound Group | 0 | 1 | 0 | 0 | 2.00 |
| Air Lease | 0 | 0 | 3 | 0 | 3.00 |
Profitability
This table compares Upbound Group and Air Lease’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Upbound Group | 0.29% | 40.50% | 7.88% |
| Air Lease | -4.64% | 8.10% | 1.89% |
Valuation and Earnings
This table compares Upbound Group and Air Lease’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Upbound Group | $4.25 billion | 0.35 | $12.36 million | $0.20 | 133.05 |
| Air Lease | $2.32 billion | 1.86 | -$97.02 million | ($1.15) | -33.77 |
Upbound Group has higher revenue and earnings than Air Lease. Air Lease is trading at a lower price-to-earnings ratio than Upbound Group, indicating that it is currently the more affordable of the two stocks.
Dividends
Upbound Group pays an annual dividend of $1.36 per share and has a dividend yield of 5.1%. Air Lease pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Upbound Group pays out 680.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Air Lease pays out -69.6% of its earnings in the form of a dividend. Air Lease has raised its dividend for 9 consecutive years.
Risk & Volatility
Upbound Group has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Air Lease has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.
Summary
Upbound Group beats Air Lease on 9 of the 17 factors compared between the two stocks.
About Upbound Group
Upbound Group, Inc. engages in the provision of furniture, electronics, appliances, computers, and smartphones through flexible rental purchase agreements. It operates through the following segments: Rent-A-Center Business, Preferred Lease, Mexico, and Franchising. The Rent-A-Center Business segment consists of company-owned rent-to-own stores in the United States and Puerto Rico. The Preferred Lease segment offers an on-site rent-to-own option at a third-party retailer’s location. The Mexico segment consists of its company-owned rent-to-own stores in Mexico. The Franchising segment sells rental merchandise to its franchisees. The company was founded by Mark E. Speese on September 16, 1986 and is headquartered in Plano, TX.
About Air Lease
Air Lease Corp. engages in the provision of aircraft leasing business. It focuses on purchasing new commercial jet transport aircraft directly from aircraft manufacturers, and leasing those aircraft to airlines throughout the world with the intention to generate attractive returns on equity. The company was founded by Steven F. Udvar-Hazy in January 2010 and is headquartered in Los Angeles, CA.
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