Reviewing QXO (NYSE:QXO) and Aercap (NYSE:AER)

QXO (NYSE:QXO) and Aercap (NYSE:AER) are both large-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

58.7% of QXO shares are held by institutional investors. Comparatively, 96.4% of Aercap shares are held by institutional investors. 41.0% of QXO shares are held by insiders. Comparatively, 0.5% of Aercap shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares QXO and Aercap’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QXO	-5.17%	2.41%	1.20%
Aercap	37.85%	17.60%	4.51%

Analyst Ratings

This is a breakdown of recent ratings for QXO and Aercap, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QXO	1	1	14	1	2.88
Aercap	0	2	8	1	2.91

QXO presently has a consensus price target of $24.77, suggesting a potential upside of 135.87%. Aercap has a consensus price target of $173.11, suggesting a potential upside of 18.80%. Given QXO’s higher probable upside, equities analysts plainly believe QXO is more favorable than Aercap.

Volatility and Risk

QXO has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, Aercap has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Earnings & Valuation

This table compares QXO and Aercap”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QXO	$6.84 billion	1.59	-$279.40 million	($0.90)	-11.67
Aercap	$8.52 billion	2.86	$3.75 billion	$20.32	7.17

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

Summary

Aercap beats QXO on 9 of the 14 factors compared between the two stocks.

About QXO

QXO, Inc. operates as a business application, technology, and consulting company in North America. The company provides solutions for accounting and business management, financial reporting, enterprise resource planning, human capital management, warehouse management systems, customer relationship management, and business intelligence. It also offers value-added services that focuses on consulting and professional, specialized programming, training, and technical support services. In addition, the company provides information technology managed services, such as cybersecurity, application hosting, disaster recovery, business continuity, cloud, and other services; and data back-up, network maintenance, and upgrade services. It serves small and medium-sized businesses primarily in the manufacturing, distribution, and service industries. QXO, Inc. is headquartered in Greenwich, Connecticut.

About Aercap

AerCap Holdings N.V. engages in the lease, financing, sale, and management of commercial flight equipment in China, Hong Kong, Macau, the United States, Ireland, and internationally. The company offers aircraft asset management services, such as remarketing aircraft and engines; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft and engines; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also include periodically inspecting the leased aircraft and engines; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft and engines; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and engine valuations; and providing market research services. In addition, the company provides cash management services, including treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and corporate secretarial services consisting of the preparation of budgets and financial statements. Further, it offers airframe and engine parts and supply chain solutions to airlines; maintenance, repair, and overhaul service providers; and aircraft parts distributors. The company had a portfolio of owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.