Head to Head Survey: Avolon Holdings (AVOL) and Textainer Group Holdings Limited (TGH)

Avolon Holdings (NYSE: AVOL) and Textainer Group Holdings Limited (NYSE:TGH) are both commercial leasing companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Avolon Holdings and Textainer Group Holdings Limited, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avolon Holdings 0 0 0 0 N/A
Textainer Group Holdings Limited 0 2 2 0 2.50

Textainer Group Holdings Limited has a consensus price target of $22.25, indicating a potential downside of 1.55%. Given Textainer Group Holdings Limited’s higher probable upside, analysts clearly believe Textainer Group Holdings Limited is more favorable than Avolon Holdings.

Insider & Institutional Ownership

23.0% of Textainer Group Holdings Limited shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Avolon Holdings and Textainer Group Holdings Limited’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avolon Holdings 28.83% 14.90% 3.31%
Textainer Group Holdings Limited 0.38% -0.44% -0.12%

Earnings and Valuation

This table compares Avolon Holdings and Textainer Group Holdings Limited’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Avolon Holdings N/A N/A N/A $1.83 16.90
Textainer Group Holdings Limited $498.19 million 2.58 -$50.66 million $0.03 753.58

Avolon Holdings has higher revenue, but lower earnings than Textainer Group Holdings Limited. Avolon Holdings is trading at a lower price-to-earnings ratio than Textainer Group Holdings Limited, indicating that it is currently the more affordable of the two stocks.

About Avolon Holdings

Avolon Holdings Limited (Avolon Holdings) is a United States-based holding company, which provides aircraft leasing and lease management services. The Company operates through its wholly owned subsidiary Avolon S.a r.l. (Avolon), which is a global aircraft leasing company focused on acquiring, managing and selling commercial aircraft. Avolon’s owned, managed and committed Portfolio comprises 227 aircraft, including 122 owned, 12 managed and 93 committed aircraft. Avolon’s owned portfolio comprises primarily of narrowbody aircraft, including the Airbus A320 family and the Boeing 737-800, and select widebody aircraft, including the Airbus A330, the Boeing 777 and the Boeing 787. Avolon’s committed Portfolio includes 66 next generation Airbus A320neo, Boeing 737 MAX, Airbus A330neo and Boeing 787 family of aircraft. Avolon has a customer base of 49 customers across 27 countries across the world.

About Textainer Group Holdings Limited

Textainer Group Holdings Limited is a holding company. The Company is involved in the purchase, ownership, management, leasing and disposal of a fleet of intermodal containers. The Company operates in three segments: Container Ownership, which owns containers; Container Management, which manages containers on behalf of affiliated and unaffiliated container investors, and provides acquisition, management and disposal services, and total managed containers, and Container Resale, which sells containers from its fleet when they reach the end of their useful lives in marine service, and also purchases and leases or resells containers from shipping line customers, container traders and other sellers of containers. The Company is a lessor of intermodal containers based on fleet size. The Company is also a seller of used containers. The Company’s subsidiaries include Textainer Equipment Management Limited (TEML) and Textainer Limited (TL).

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