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AerSale vs. Air Lease: Which Aviation Stock Is the Smarter Buy?
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With global fleet expansion driven by rising air traffic and supply-chain disruptions delaying new aircraft deliveries, aviation players like AerSale Corporation (ASLE - Free Report) and Air Lease Corp. (AL - Free Report) are well-positioned to benefit from sustained industry tailwinds. Airlines increasingly seek flexible financing and cost-effective fleet upgrades, placing aftermarket providers like ASLE and leasing giants like AL in strategic demand.
AerSale specializes in aftermarket aircraft, engine parts, leasing, and MRO (Maintenance, Repair, and Overhaul) services, while Air Lease focuses on leasing new aircraft to airlines worldwide. Current market conditions, marked by rising aircraft utilization and a shortage of new jets, are fueling demand for both maintenance services and leased aircraft. These dynamics make both ASLE and AL attractive long-term aviation investments.
However, given their different business models and risk profiles, investors may face difficulty in making a choice. The following analysis explores each company's strengths and challenges to determine which may offer better returns in the current market landscape.
Key Takeaways for ASLE
Recent Achievements: AerSale’s first-quarter 2025 results reflected strong demand for its Used Serviceable Material (“USM”) and engine leasing business. Notably, first-quarter revenues for its USM products and leasing portfolio improved a solid 44.1% and 143.4%, respectively, year over year. This is consistent with the current market trends, which we may expect to remain favorable in the near term and thereby continue to contribute significantly to AerSale’s future revenues.
Meanwhile, in January 2025, AerSale acquired a parts portfolio from Sanad Group, adding high-demand components for aircraft like the 737NG, A320 Family, and Boeing 777. This strategic move expands AerSale’s inventory and enhances its ability to serve a broad global customer base with quality parts for widely operated aircraft.
Financial Stability: ASLE’s cash and cash equivalents as of March 31, 2025, totaled $11 million. Its current debt as of the same date was $1 million, while long-term debt was $4 million. A comparative analysis of these figures reflects that Aersale boasts a strong solvency position, which, in turn, should enable the company to invest in new products like its innovative AerAware Enhanced Flight Vision System and award its investors with hefty returns through programs like share repurchase, just like it did recently.
Evidently, in March 2025, the company signed an agreement to repurchase shares worth $45 million from its long-term private equity sponsor Leonard Green & Partners, L.P.
Key Takeaways for AL
Recent Achievements: Air Lease ended the first quarter of 2025 with a solid year-over-year revenue improvement of 11.3%. Its net income surged a massive 274.5%. As of March 31, 2025, the net book value of AL’s fleet increased to $28.6 billion from $28.2 billion as of Dec. 31, 2024. As of March 31, 2025, the company owned 487 aircraft in its aircraft portfolio, comprised of 352 narrowbody aircraft and 135 widebody aircraft.
Among its more recent achievements, worth mentioning is Air Lease signing a supplemental agreement with Boeing to buy five additional 737-8 Max jets in April 2025, scheduled for delivery in 2031. Including these, AL has contractual commitments for 260 new aircraft from Airbus and Boeing through 2031, with a $16.6 billion inflation-adjusted value. This substantial order pipeline strengthens Air Lease’s long-term revenue prospects by expanding its capacity to lease more aircraft in the coming years.
Financial Stability: As of March 31, 2025, AL’s cash and cash equivalents amounted to $0.46 billion. Its long-term debt totaled $19.89 billion, which was considerably higher than its cash balance. However, its current debt was nil. Hence, we can safely conclude that the stock holds a solid solvency position for the near term, which, in turn, should help the company invest in acquiring more jets and thereby substantially bolster its steady revenue stream.
ASLE vs ALE: Weighing the Risks
While AerSale presents strong growth opportunities, it faces a few investment risks. A key concern is its reliance on feedstock availability for USM sales. Tight supply conditions for end-of-life aircraft and engines could constrain AerSale’s ability to scale its USM business, thereby affecting its revenues and margins. Moreover, while innovations like AerAware offer competitive advantages, ASLE’s commercial adoption rates could be slower than anticipated, limiting its expected revenue gains.
On the other hand, AL’s high capital commitments expose it to macroeconomic volatility, geopolitical risks and delivery delays from manufacturers. Moreover, residual value risk remains, as the future value of leased aircraft can be affected by market shifts, technological changes, or environmental regulations.
How Do Zacks Estimates Compare for ASLE & AL?
The Zacks Consensus Estimate for AerSale’s 2025 sales suggests a slip of 0.4% year over year, while that for its earnings per share (EPS) implies an improvement of 133.3%. The stock’s EPS estimates have been trending downward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AL’s 2025 sales implies a year-over-year improvement of 7.5%, while that for earnings suggests an increase of 9.6%. The stock’s bottom-line estimates have moved northward over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: ASLE vs AL
ASLE (down 12.5%) has underperformed AL (up 26%) over the past three months and has done the same in the past year. While ASLE’s shares have lost 20.7%, AL surged 23%.
Image Source: Zacks Investment Research
Valuation of AerSale Less Attractive Than That of AL
AerSale is trading at a forward earnings multiple of 10.68X, above AL’s forward earnings multiple of 9.06X.
Image Source: Zacks Investment Research
AL’s ROE Better Than ASLE
A comparative analysis of both these stocks’ Return on Equity (ROE) suggests that Air Lease is more efficient at generating profits from its equity base than AerSale.
Image Source: Zacks Investment Research
Final Call
While both AerSale and Air Lease are strategically positioned to benefit from long-term tailwinds in the aviation sector, driven by increased air traffic, aging fleets and delays in new aircraft deliveries, their near-term prospects differ.
While AerSale has demonstrated promising growth in USM and leasing revenues, supported by strategic acquisitions and a low-debt balance sheet, Air Lease offers more consistent top and bottom-line growth, a strong order backlog and higher ROE, backing its relatively more attractive valuation.
AL’s upward-trending estimates, despite its higher debt levels, along with its robust leasing pipeline and stable cash flow generation, lend confidence. As a result, AL currently appears to be the smarter pick for investors seeking stable, long-term exposure to the aviation sector. In contrast, given ASLE’s declining EPS estimates and relatively premium valuation, investors may consider divesting the stock from their portfolios.
Image: Bigstock
AerSale vs. Air Lease: Which Aviation Stock Is the Smarter Buy?
With global fleet expansion driven by rising air traffic and supply-chain disruptions delaying new aircraft deliveries, aviation players like AerSale Corporation (ASLE - Free Report) and Air Lease Corp. (AL - Free Report) are well-positioned to benefit from sustained industry tailwinds. Airlines increasingly seek flexible financing and cost-effective fleet upgrades, placing aftermarket providers like ASLE and leasing giants like AL in strategic demand.
AerSale specializes in aftermarket aircraft, engine parts, leasing, and MRO (Maintenance, Repair, and Overhaul) services, while Air Lease focuses on leasing new aircraft to airlines worldwide. Current market conditions, marked by rising aircraft utilization and a shortage of new jets, are fueling demand for both maintenance services and leased aircraft. These dynamics make both ASLE and AL attractive long-term aviation investments.
However, given their different business models and risk profiles, investors may face difficulty in making a choice. The following analysis explores each company's strengths and challenges to determine which may offer better returns in the current market landscape.
Key Takeaways for ASLE
Recent Achievements: AerSale’s first-quarter 2025 results reflected strong demand for its Used Serviceable Material (“USM”) and engine leasing business. Notably, first-quarter revenues for its USM products and leasing portfolio improved a solid 44.1% and 143.4%, respectively, year over year. This is consistent with the current market trends, which we may expect to remain favorable in the near term and thereby continue to contribute significantly to AerSale’s future revenues.
Meanwhile, in January 2025, AerSale acquired a parts portfolio from Sanad Group, adding high-demand components for aircraft like the 737NG, A320 Family, and Boeing 777. This strategic move expands AerSale’s inventory and enhances its ability to serve a broad global customer base with quality parts for widely operated aircraft.
Financial Stability: ASLE’s cash and cash equivalents as of March 31, 2025, totaled $11 million. Its current debt as of the same date was $1 million, while long-term debt was $4 million. A comparative analysis of these figures reflects that Aersale boasts a strong solvency position, which, in turn, should enable the company to invest in new products like its innovative AerAware Enhanced Flight Vision System and award its investors with hefty returns through programs like share repurchase, just like it did recently.
Evidently, in March 2025, the company signed an agreement to repurchase shares worth $45 million from its long-term private equity sponsor Leonard Green & Partners, L.P.
Key Takeaways for AL
Recent Achievements: Air Lease ended the first quarter of 2025 with a solid year-over-year revenue improvement of 11.3%. Its net income surged a massive 274.5%. As of March 31, 2025, the net book value of AL’s fleet increased to $28.6 billion from $28.2 billion as of Dec. 31, 2024. As of March 31, 2025, the company owned 487 aircraft in its aircraft portfolio, comprised of 352 narrowbody aircraft and 135 widebody aircraft.
Among its more recent achievements, worth mentioning is Air Lease signing a supplemental agreement with Boeing to buy five additional 737-8 Max jets in April 2025, scheduled for delivery in 2031. Including these, AL has contractual commitments for 260 new aircraft from Airbus and Boeing through 2031, with a $16.6 billion inflation-adjusted value. This substantial order pipeline strengthens Air Lease’s long-term revenue prospects by expanding its capacity to lease more aircraft in the coming years.
Financial Stability: As of March 31, 2025, AL’s cash and cash equivalents amounted to $0.46 billion. Its long-term debt totaled $19.89 billion, which was considerably higher than its cash balance. However, its current debt was nil. Hence, we can safely conclude that the stock holds a solid solvency position for the near term, which, in turn, should help the company invest in acquiring more jets and thereby substantially bolster its steady revenue stream.
ASLE vs ALE: Weighing the Risks
While AerSale presents strong growth opportunities, it faces a few investment risks. A key concern is its reliance on feedstock availability for USM sales. Tight supply conditions for end-of-life aircraft and engines could constrain AerSale’s ability to scale its USM business, thereby affecting its revenues and margins. Moreover, while innovations like AerAware offer competitive advantages, ASLE’s commercial adoption rates could be slower than anticipated, limiting its expected revenue gains.
On the other hand, AL’s high capital commitments expose it to macroeconomic volatility, geopolitical risks and delivery delays from manufacturers. Moreover, residual value risk remains, as the future value of leased aircraft can be affected by market shifts, technological changes, or environmental regulations.
How Do Zacks Estimates Compare for ASLE & AL?
The Zacks Consensus Estimate for AerSale’s 2025 sales suggests a slip of 0.4% year over year, while that for its earnings per share (EPS) implies an improvement of 133.3%. The stock’s EPS estimates have been trending downward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AL’s 2025 sales implies a year-over-year improvement of 7.5%, while that for earnings suggests an increase of 9.6%. The stock’s bottom-line estimates have moved northward over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: ASLE vs AL
ASLE (down 12.5%) has underperformed AL (up 26%) over the past three months and has done the same in the past year. While ASLE’s shares have lost 20.7%, AL surged 23%.
Image Source: Zacks Investment Research
Valuation of AerSale Less Attractive Than That of AL
AerSale is trading at a forward earnings multiple of 10.68X, above AL’s forward earnings multiple of 9.06X.
Image Source: Zacks Investment Research
AL’s ROE Better Than ASLE
A comparative analysis of both these stocks’ Return on Equity (ROE) suggests that Air Lease is more efficient at generating profits from its equity base than AerSale.
Image Source: Zacks Investment Research
Final Call
While both AerSale and Air Lease are strategically positioned to benefit from long-term tailwinds in the aviation sector, driven by increased air traffic, aging fleets and delays in new aircraft deliveries, their near-term prospects differ.
While AerSale has demonstrated promising growth in USM and leasing revenues, supported by strategic acquisitions and a low-debt balance sheet, Air Lease offers more consistent top and bottom-line growth, a strong order backlog and higher ROE, backing its relatively more attractive valuation.
AL’s upward-trending estimates, despite its higher debt levels, along with its robust leasing pipeline and stable cash flow generation, lend confidence. As a result, AL currently appears to be the smarter pick for investors seeking stable, long-term exposure to the aviation sector. In contrast, given ASLE’s declining EPS estimates and relatively premium valuation, investors may consider divesting the stock from their portfolios.
While AL carries a Zacks Rank #2 (Buy), ASLE holds a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.