AerSale (NASDAQ:ASLE – Get Rating) and Distribution Solutions Group (NASDAQ:DSGR – Get Rating) are both small-cap aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Risk and Volatility
AerSale has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, Distribution Solutions Group has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Valuation and Earnings
This table compares AerSale and Distribution Solutions Group’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AerSale | $340.44 million | 2.07 | $36.12 million | $0.87 | 15.67 |
| Distribution Solutions Group | $417.73 million | 2.31 | $9.41 million | $1.57 | 31.62 |
AerSale has higher earnings, but lower revenue than Distribution Solutions Group. AerSale is trading at a lower price-to-earnings ratio than Distribution Solutions Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AerSale and Distribution Solutions Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AerSale | 10.70% | 12.86% | 10.89% |
| Distribution Solutions Group | 3.42% | 20.28% | 10.69% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for AerSale and Distribution Solutions Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AerSale | 0 | 1 | 0 | 0 | 2.00 |
| Distribution Solutions Group | 0 | 0 | 0 | 0 | N/A |
Institutional & Insider Ownership
69.0% of AerSale shares are owned by institutional investors. Comparatively, 88.2% of Distribution Solutions Group shares are owned by institutional investors. 79.2% of AerSale shares are owned by insiders. Comparatively, 51.8% of Distribution Solutions Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Summary
Distribution Solutions Group beats AerSale on 7 of the 11 factors compared between the two stocks.
AerSale Company Profile (Get Rating)
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 also 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.
Distribution Solutions Group Company Profile (Get Rating)
Lawson Products, Inc. sells and distributes specialty products to the industrial, commercial, institutional, and government maintenance, repair, and operations market. It sells its products to customers in the United States, Puerto Rico, Canada, Mexico, and the Caribbean. The company was founded in 1952 and is headquartered in Chicago, Illinois.
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