Financial Contrast: Black Diamond Group (OTCMKTS:BDIMF) vs. AerCap (AER)

Black Diamond Group (OTCMKTS:BDIMF) and AerCap (NYSE:AER) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

85.2% of AerCap shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Black Diamond Group and AerCap’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Diamond Group -53.71% -6.18% -3.43%
AerCap 20.57% 11.09% 2.29%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Black Diamond Group and AerCap, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Diamond Group 0 0 0 0 N/A
AerCap 1 3 1 0 2.00

AerCap has a consensus target price of $58.00, suggesting a potential upside of 11.99%. Given AerCap’s higher probable upside, analysts clearly believe AerCap is more favorable than Black Diamond Group.

Volatility and Risk

Black Diamond Group has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, AerCap has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500.

Earnings and Valuation

This table compares Black Diamond Group and AerCap’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Black Diamond Group $120.79 million 0.88 -$73.59 million N/A N/A
AerCap $4.80 billion 1.64 $1.02 billion $6.83 7.58

AerCap has higher revenue and earnings than Black Diamond Group.

Summary

AerCap beats Black Diamond Group on 9 of the 10 factors compared between the two stocks.

About Black Diamond Group

Black Diamond Group Limited rents and sells workspace and modular workforce accommodation solutions. It operates through four segments: BOXX Modular, Black Diamond Camps & Lodging, Black Diamond Energy Services, and Black Diamond International. The BOXX Modular segment provides modular space rentals to customers in construction, real estate development, manufacturing, education, financial institutions, resource industries, and government agencies in North America. Its products include office units, lavatories, storage units, large multi-unit office complexes, classroom facilities, high security modular buildings, custom manufactured modular facilities, and blast resistant structures. This segment also sells new and used space rentals units; and provides delivery, installation, project management, and ancillary products and services. The Camps & Lodging segment provides workforce accommodation solutions, such as camps with on-site management of catering, housekeeping, front desk services, as well as fresh water and waste water management, electricity, television, telephone, Internet, and the provision of consumables, such as diesel and propane. The Energy Services segment provides equipment rentals and accommodations to customers in the oil and gas industry throughout western Canada and the Midwest and western United States. This segment offers accommodations, which consist of single and multi-unit complexes; and surface rentals, including various types of equipment that support drilling, completion, and production activities. The segment also provides installation, delivery, maintenance, and catering services. The International segment rents and sells remote workforce housing and modular space rental solutions primarily in Australia. This segment serves customers in resources, oil and gas, construction, general industry, government, and education sectors. The company was founded in 2003 and is headquartered in Calgary, Canada.

About AerCap

AerCap Holdings N.V., an aircraft leasing company, engages in the lease, financing, sale, and management of commercial aircraft and engines in China, the United States, Ireland, and internationally. The company offers aircraft asset management services, including remarketing aircraft; collecting rental and maintenance rent payments, monitoring aircraft maintenance, monitoring and enforcing contract compliance, and accepting delivery and redelivery of aircraft; and conducting ongoing lessee financial performance reviews. Its aircraft asset management services also comprise periodically inspecting the leased aircraft; coordinating technical modifications to aircraft to meet new lessee requirements; conducting restructuring negotiations in connection with lease defaults; repossessing aircraft; arranging and monitoring insurance coverage; registering and de-registering aircraft; arranging for aircraft and aircraft engine valuations; and providing market research services. The company also 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. As of December 31, 2018, it had a portfolio of 1,421 owned, managed, or on order aircraft. AerCap Holdings N.V. was founded in 1995 and is headquartered in Dublin, Ireland.

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