Critical Comparison: Curtiss-Wright (NYSE:CW) vs. AerSale (NASDAQ:ASLE)

Curtiss-Wright (NYSE:CW) and AerSale (NASDAQ:ASLE) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Curtiss-Wright and AerSale, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curtiss-Wright	0	4	3	0	2.43
AerSale	2	3	0	0	1.60

Curtiss-Wright currently has a consensus target price of $765.71, indicating a potential upside of 35.23%. AerSale has a consensus target price of $6.83, indicating a potential upside of 17.82%. Given Curtiss-Wright’s stronger consensus rating and higher possible upside, equities analysts plainly believe Curtiss-Wright is more favorable than AerSale.

Institutional and Insider Ownership

82.7% of Curtiss-Wright shares are owned by institutional investors. Comparatively, 69.5% of AerSale shares are owned by institutional investors. 0.5% of Curtiss-Wright shares are owned by company insiders. Comparatively, 20.1% of AerSale shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Curtiss-Wright and AerSale’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curtiss-Wright	14.81%	20.49%	10.19%
AerSale	-1.23%	-0.27%	-0.17%

Earnings and Valuation

This table compares Curtiss-Wright and AerSale”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curtiss-Wright	$3.50 billion	5.98	$484.23 million	$14.53	38.97
AerSale	$335.29 million	0.83	$8.57 million	($0.08)	-72.50

Curtiss-Wright has higher revenue and earnings than AerSale. AerSale is trading at a lower price-to-earnings ratio than Curtiss-Wright, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Curtiss-Wright has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, AerSale has a beta of 0.23, meaning that its share price is 77% less volatile than the S&P 500.

Summary

Curtiss-Wright beats AerSale on 13 of the 14 factors compared between the two stocks.

About Curtiss-Wright

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.

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.