6 Aircraft Leasing Stocks to Consider for Your Stock Portfolio

NEW YORK (TheStreet) -- With so many different investments options, investors often have a difficult time deciding which direction is the best one for them to take.

Here at TheStreet, we attempt to declutter the excess of information available and present it to our readers in a way so that they can make wise investment decisions.

Whether you're an individual investor or work with a financial advisor, our objective is to help simplify the process and present information that's user friendly.

The airline industry is one of the largest consumer industries in the world.  It amassed $710 billion in revenue last year, according to the International Air Transport Association.

The overall industry is comprised of different segments, including commercial airlines, airport operating and the aircraft leasing sectors.

The aircraft leasing segment is often overlooked because of its lack of commercial presence. 

Companies in this segment own a variety of aircraft to rent out to commercial airlines or to a wide range of aircraft operators.  Airlines for example, will opt to lease aircraft over buying them for two main reasons: to provide a temporary increase in passenger capacity, and to operate aircrafts without the fiscal responsibility of ownership.

The aircraft leasing industry has experienced tremendous growth worldwide over the past 35 years.  In 1980, less than 5% of airline's fleets were made up of leased aircrafts.  Today, over one-third of the global airline fleet is rented.  In addition, aircraft leasing companies account for over 6,000 available aircraft, whose value totals over $165 billion.

Here are six aircraft leasing stocks, ranked by our own proprietary quantitative ranking system at TheStreetRatings.com, which are worth looking over.  Note that these ratings can change at any time. If you would like access to real-time ratings of these stocks, you can access them by subscribing to TheStreet Quant Ratings.

6.  Atlas Air Worldwide Holdings Inc. (AAWW)
Category: Aircraft Leasing

Atlas Air Worldwide Holdings, Inc., through its subsidiaries, provides outsourced aircraft and aviation operating services worldwide.

It operates through ACMI, AMC Charter, Commercial Charter, and Dry Leasing segments. The company offers outsourced cargo and passenger aircraft operating solutions comprising contractual service arrangements, which include providing aircraft to customers and value-added services, such as crew, maintenance, and insurance, as well as offering crew, maintenance, and insurance services for the customer providing aircraft.

It also provides military charter services to the U.S. Military Air Mobility Command, as well as seasonal, commercial, and ad hoc charter services, and aircraft and engine leasing solutions.

Its customers include airlines, express delivery providers, freight forwarders, the U.S. military, and charter brokers.

The company was founded in 1992 and is headquartered in Purchase, NY.

Free Report: Jim Cramer's Best Stocks for 2014

TheStreet Ratings team rates ATLAS AIR WORLDWIDE HLDG INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate ATLAS AIR WORLDWIDE HLDG INC (AAWW) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."

You can view the full analysis from the report here: AAWW Ratings Report

5.  Air Transport Services Group, Inc. (ATSG)
Category: Aircraft Leasing

Air Transport Services Group, Inc., through its subsidiaries, provides airline operations, aircraft leasing and maintenance, and other support services primarily to the cargo transportation and package delivery industries.

The company operates through two segments, ACMI Services and CAM. The ACMI Services segment provides airline operations to airlines, freight forwarders, and the U.S. military. This segment offers aircraft, crew, maintenance, and insurance for specified cargo operations, as well as operates charter agreements. The CAM segment leases aircraft; and offers medium range and medium capacity airlift services.

The company also provides support services, such as scheduled aircraft maintenance, line maintenance, and crew training services; flight simulator rental services; aircraft modification, repair, and overhaul services; facility maintenance and ground equipment rental services for aircraft support; and aircraft dispatch and flight tracking services. In addition, it is engaged in the resale and brokerage of aircraft parts; and operates mail sorting centers for the U.S Postal Service.

As of December 31, 2013, the company operated a fleet of 55 aircraft, including 49 owned and six leased aircraft. It serves delivery companies, freight forwarders, airlines, and government customers in the U.S. and internationally.

The company was formerly known as ABX Holdings, Inc. Air Transport Services Group, Inc. was founded in 1980 and is headquartered in Wilmington, OH.

Free Report: Jim Cramer's Best Stocks for 2014

TheStreet Ratings team rates AIR TRANSPORT SERVICES GROUP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AIR TRANSPORT SERVICES GROUP (ATSG) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, deteriorating net income and weak operating cash flow."

You can view the full analysis from the report here: ATSG Ratings Report

4.  AerCap Holdings N.V. (AER)
Category: Aircraft Leasing

AerCap Holdings N.V., through its subsidiaries, is engaged in leasing, financing, selling, and managing commercial aircraft and engines primarily in the U.S. and Russia. The company provides aircraft asset management and corporate services, including remarketing aircraft; collecting rental and maintenance 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 restructurings 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.

In addition, the company offers cash management services consisting of treasury services, such as the financing, refinancing, hedging, and ongoing cash management of vehicles; and administrative services comprising accounting and secretarial services, including the preparation of budgets and financial statements, and liaising with, in the case of securitization vehicles.

AerCap Holdings offers its asset management and corporate services to securitization vehicles, joint ventures, and other third parties. The company operates a fleet of 378 aircraft.

AerCap Holdings N.V. was founded in 1995 and is headquartered in Schiphol, the Netherlands.

Free Report: Jim Cramer's Best Stocks for 2014

TheStreet Ratings team rates AERCAP HOLDINGS NV as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AERCAP HOLDINGS NV (AER) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and generally higher debt management risk."

You can view the full analysis from the report here: AER Ratings Report

3.  FLY Leasing Limited (FLY)
Category: Aircraft Leasing

FLY Leasing Limited, together with its subsidiaries, is engaged in purchasing and leasing commercial aircraft under multi-year contracts to various airlines worldwide.

As of April 8, 2014, it operated a fleet of 119 commercial jet aircrafts. The company was founded in 2007 and is headquartered in Dun Laoghaire, Ireland.

Free Report: Jim Cramer's Best Stocks for 2014

TheStreet Ratings team rates FLY LEASING LTD -ADR as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate FLY LEASING LTD -ADR (FLY) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and feeble growth in the company's earnings per share."

You can view the full analysis from the report here: FLY Ratings Report

2.  Air Lease Corp. (AL)
Category: Aircraft Leasing

Air Lease Corp. is engaged 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, 2013, the company owned a fleet of 193 aircraft, including 146 single-aisle narrowbody jet aircraft, 31 twin-aisle widebody jet aircraft, and 16 turboprop aircraft.

The company was founded in 2010 and is based in Los Angeles, CA.

Free Report: Jim Cramer's Best Stocks for 2014

TheStreet Ratings team rates AIR LEASE CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate AIR LEASE CORP (AL) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."

You can view the full analysis from the report here: AL Ratings Report

1.  Aircastle LTD (AYR)
Category: Aircraft Leasing

Aircastle Limited acquires, leases, and sells commercial jet aircraft to airlines worldwide.

The company also makes investments in various aviation assets, including debt investments secured by commercial jet aircraft.

As of December 31, 2013, its aircraft portfolio comprised 162 aircraft that were leased to 64 customers located in 37 countries. Aircastle Limited was founded in 2004 and is based in Stamford, CT.

Free Report: Jim Cramer's Best Stocks for 2014

TheStreet Ratings team rates AIRCASTLE LTD as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AIRCASTLE LTD (AYR) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: AYR Ratings Report

More from Markets

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Video: Stop Using Student Loan Money to Buy Bitcoin

Video: Stop Using Student Loan Money to Buy Bitcoin

Let the Najarian Brothers Crash-Proof Portfolio

Let the Najarian Brothers Crash-Proof Portfolio

Facebook Sends Facial Recognition Notification in Error

Facebook Sends Facial Recognition Notification in Error

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists