Financial Comparison: Air Lease (AL) versus Quest Resource (QRHC)

Air Lease (NYSE: AL) and Quest Resource (NASDAQ:QRHC) are both transportation companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Profitability

This table compares Air Lease and Quest Resource’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Air Lease 50.86% 11.03% 2.80%
Quest Resource -4.34% -8.32% -5.87%

Risk and Volatility

Air Lease has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Quest Resource has a beta of 2.82, meaning that its stock price is 182% more volatile than the S&P 500.

Institutional & Insider Ownership

90.1% of Air Lease shares are owned by institutional investors. Comparatively, 12.0% of Quest Resource shares are owned by institutional investors. 9.3% of Air Lease shares are owned by insiders. Comparatively, 50.2% of Quest Resource shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Air Lease and Quest Resource’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Air Lease $1.45 billion 3.20 $756.15 million $3.65 12.21
Quest Resource $138.35 million 0.23 -$5.82 million ($0.38) -5.37

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

Dividends

Air Lease pays an annual dividend of $0.40 per share and has a dividend yield of 0.9%. Quest Resource does not pay a dividend. Air Lease pays out 11.0% of its earnings in the form of a dividend. Air Lease has increased its dividend for 4 consecutive years.

Analyst Ratings

This is a breakdown of current ratings and target prices for Air Lease and Quest Resource, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Lease 1 2 7 0 2.60
Quest Resource 0 0 1 0 3.00

Air Lease presently has a consensus price target of $53.17, suggesting a potential upside of 19.26%. Quest Resource has a consensus price target of $5.00, suggesting a potential upside of 145.10%. Given Quest Resource’s stronger consensus rating and higher possible upside, analysts clearly believe Quest Resource is more favorable than Air Lease.

Summary

Air Lease beats Quest Resource on 12 of the 17 factors compared between the two stocks.

About Air Lease

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines. In addition, it provides fleet management services to investors and owners of aircraft portfolios. As of December 31, 2017, the company owned a fleet of 244 aircraft, including 188 narrowbody jet aircraft and 56 widebody jet aircraft. Air Lease Corporation was founded in 2010 and is based in Los Angeles, California.

About Quest Resource

Quest Resource Holding Corporation, through its subsidiaries, provides management programs to reuse, recycle, and dispose various waste streams and recyclables in the United States. The company offers recycling and waste management services for motor oil, oil filters, scrap tires, grease and cooking oil, food waste, and expired food products; and various other materials, such as glass, cardboard, paper, and metal, as well as hazardous materials, plastics, construction debris, batteries, mercury, lights, regulated waste, electronic devices, and industrial cleaning products. It also provides landfill diversion services. In addition, the company operates Earth911.com, a Website that offers data, information, and articles in engaging, educating, and entertaining consumers regarding the environment, recycling, and sustainability. Further, it provides sustainability programs, including strategic planning, writing policies and procedures, LEED and green globe certification, life cycle assessment, energy modeling, building commissioning, and carbon emission reduction reporting. Quest Resource Holding Corporation serves big box, food chain, and other retailers; automotive and fleet providers; construction and demolition projects; and commercial, industrial, residential, and educational properties through direct sales force and strategic partnerships. The company was formerly known as Infinity Resources Holdings Corp. and changed its name to Quest Resource Holding Corporation in October 2013. Quest Resource Holding Corporation is based in The Colony, Texas.

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