AL vs GATX

For growth investors, Air Lease Corporation (AL) is the stronger pick with 10.

3% revenue growth year-over-year, versus 9. 8% for GATX Corporation (GATX). Air Lease Corporation (AL) offers the better valuation at 7. 0x trailing P/E (12. 8x forward), making it the more compelling value choice. Analysts rate Air Lease Corporation (AL) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Air Lease Corporation (AL) is the cheapest at 7.

0x versus GATX Corporation at 20. 1x. On forward P/E, Air Lease Corporation is actually cheaper at 12. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Air Lease Corporation wins at 0. 79x versus GATX Corporation's 0. 83x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, GATX Corporation (GATX) delivered a total return of +87.

5%, compared to +56. 3% for Air Lease Corporation (AL). Over 10 years, the gap is even starker: GATX returned +359. 5% versus AL's +129. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Air Lease Corporation (AL) is the lower-risk stock at 0.

30β versus GATX Corporation's 0. 71β — meaning GATX is approximately 138% more volatile than AL relative to the S&P 500. On balance sheet safety, Air Lease Corporation (AL) carries a lower debt/equity ratio of 2% versus 4% for GATX Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Air Lease Corporation (AL) is pulling ahead at 10.

3% versus 9. 8% for GATX Corporation (GATX). On earnings-per-share growth, the picture is similar: Air Lease Corporation grew EPS 179. 0% year-over-year, compared to 17. 2% for GATX Corporation. Over a 3-year CAGR, GATX leads at 11. 0% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Air Lease Corporation (AL) is the more profitable company, earning 36.

1% net margin versus 19. 2% for GATX Corporation — meaning it keeps 36. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AL leads at 50. 5% versus 30. 7% for GATX. At the gross margin level — before operating expenses — AL leads at 59. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Air Lease Corporation (AL) is the more undervalued stock at a PEG of 0. 79x versus GATX Corporation's 0. 83x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Air Lease Corporation (AL) trades at 12. 8x forward P/E versus 18. 3x for GATX Corporation — 5. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GATX: 15. 8% to $212. 00.

All stocks in this comparison pay dividends.

GATX Corporation (GATX) offers the highest yield at 1. 4%, versus 1. 3% for Air Lease Corporation (AL).

For long-horizon retirement investors, Air Lease Corporation (AL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

30), 1. 3% yield, +129. 9% 10Y return). Both have compounded well over 10 years (AL: +129. 9%, GATX: +359. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AL is a small-cap deep-value stock; GATX is a small-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.