AAR (NYSE:AIR) vs. Erickson (OTCMKTS:EACIQ) Head-To-Head Analysis

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

Insider and Institutional Ownership

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

Profitability

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

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

Analyst Recommendations

This is a summary of recent ratings for Erickson and AAR, as reported by MarketBeat.com.

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

AAR has a consensus target price of $81.00, suggesting a potential upside of 31.05%. Given AAR’s stronger consensus rating and higher probable upside, analysts clearly believe AAR is more favorable than Erickson.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Erickson	N/A	N/A	N/A	N/A	N/A
AAR	$2.43 billion	0.91	$46.30 million	$1.82	33.96

AAR has higher revenue and earnings than Erickson.

Summary

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

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.

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.