Erickson (OTCMKTS:EACIQ) & AAR (NYSE:AIR) Head-To-Head Contrast

AAR (NYSE:AIR) and Erickson (OTCMKTS:EACIQ) are both aerospace companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for AAR and Erickson, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAR	0	0	4	0	3.00
Erickson	0	0	0	0	0.00

AAR currently has a consensus target price of $81.00, indicating a potential upside of 22.10%. Given AAR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe AAR is more favorable than Erickson.

Valuation and Earnings

This table compares AAR and Erickson”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAR	$2.43 billion	0.98	$46.30 million	$0.28	236.93
Erickson	N/A	N/A	N/A	N/A	N/A

AAR has higher revenue and earnings than Erickson.

Institutional and Insider Ownership

90.7% of AAR shares are owned by institutional investors. Comparatively, 13.6% of Erickson shares are owned by institutional investors. 4.1% of AAR shares are owned by company insiders. Comparatively, 55.0% of Erickson shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares AAR and Erickson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAR	2.67%	10.22%	5.06%
Erickson	N/A	N/A	N/A

Summary

AAR beats Erickson on 8 of the 9 factors compared between the two stocks.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

About Erickson

Erickson Incorporated is a provider of aviation services to both commercial and governmental entities in approximately 20 countries. The Company’s operating segments include Commercial Aviation Services, Global Defense and Security, and Manufacturing and Maintenance, Repair and Overhaul (MRO). The Company owns and operates a fleet of aircraft and provides a range of aerial services, including critical supply and logistics for deployed military forces, humanitarian relief, firefighting, timber harvesting, infrastructure construction and crewing. It also maintains a vertically integrated manufacturing capability for the Aircrane and related components, and MRO services for the Aircrane and other aircraft. The Company operates a fleet of light, medium and heavy rotor-wing and fixed-wing aircraft. The Company also leases its aviation services for missions, with customers paying for the aircraft, maintenance, crewing services and fuel to operate the aircraft.