BAE SYS PLC/S (OTCMKTS:BAESY) and DAIKIN INDUSTRI/ADR (OTCMKTS:DKILY) are both large-cap aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Profitability

This table compares BAE SYS PLC/S and DAIKIN INDUSTRI/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BAE SYS PLC/S N/A N/A N/A
DAIKIN INDUSTRI/ADR N/A N/A N/A

Volatility & Risk

BAE SYS PLC/S has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, DAIKIN INDUSTRI/ADR has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

0.4% of BAE SYS PLC/S shares are owned by institutional investors. Comparatively, 0.1% of DAIKIN INDUSTRI/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

BAE SYS PLC/S pays an annual dividend of $0.93 per share and has a dividend yield of 4.2%. DAIKIN INDUSTRI/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. BAE SYS PLC/S pays out 45.6% of its earnings in the form of a dividend. DAIKIN INDUSTRI/ADR pays out 20.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares BAE SYS PLC/S and DAIKIN INDUSTRI/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BAE SYS PLC/S $22.52 billion 0.78 $1.65 billion $2.04 10.81
DAIKIN INDUSTRI/ADR $22.38 billion 1.60 $1.70 billion $0.59 20.73

DAIKIN INDUSTRI/ADR has lower revenue, but higher earnings than BAE SYS PLC/S. BAE SYS PLC/S is trading at a lower price-to-earnings ratio than DAIKIN INDUSTRI/ADR, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for BAE SYS PLC/S and DAIKIN INDUSTRI/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BAE SYS PLC/S 0 4 3 0 2.43
DAIKIN INDUSTRI/ADR 0 0 2 0 3.00

Summary

BAE SYS PLC/S beats DAIKIN INDUSTRI/ADR on 6 of the 10 factors compared between the two stocks.

About BAE SYS PLC/S

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems and electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, and hybrid electric drive systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for C4ISR systems and enterprise IT networks; and solutions to enhance the collection, analysis, and processing of data across the US civilian and military intelligence communities. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, data against attacks; security and intelligence solutions to the UK government and allied international governments; anti-fraud and regulatory compliance solutions; and security advisory and managed security services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems. It also supplies naval gun system; and provides ammunitions, precision munitions, artillery systems, and missile launchers. BAE Systems plc was incorporated in 1979 and is based in London, the United Kingdom.

About DAIKIN INDUSTRI/ADR

Daikin Industries, Ltd. manufactures, distributes, and sells air-conditioning and refrigeration equipment, and chemical products. Its air-conditioning products include room air-conditioning systems, air purifiers, heat-pump hot-water-supply and room-heating systems, packaged air-conditioning systems, multiple air-conditioning systems for office buildings, air-conditioning systems for facilities and plants, absorption refrigerators, freezers, water chillers, turbo refrigerator equipment, air-handling units, air filters, industrial dust collectors, and marine-type container refrigeration systems. The company's chemical products comprise fluorocarbons, fluoroplastics, fluoroelastomers, fluoropaints, fluoro coating agents, semiconductor-etching products, water and oil repellent agents, pharmaceuticals and intermediates, and dry air suppliers. It also provides oil hydraulics products, including oil hydraulic pumps, oil hydraulic valves, cooling equipment and systems, inverter controlled pump motors, hydrostatic transmissions, and centralized lubrication units and systems; and defense products consisting of warheads, warhead parts for guided missiles, and home-use oxygen therapy equipment. In addition, the company offers after sales services. It sells its products in Japan, the United States, China, rest of Asia and Oceania, Europe, and internationally. Daikin Industries, Ltd. was founded in 1924 and is headquartered in Osaka, Japan.

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