Head-To-Head Analysis: Airbus (OTCMKTS:EADSY) & StandardAero (NYSE:SARO)

Airbus (OTCMKTS:EADSY) and StandardAero (NYSE:SARO) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

0.3% of Airbus shares are owned by institutional investors. 1.9% of StandardAero shares are owned by company insiders. 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.

Volatility & Risk

Airbus has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, StandardAero has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Airbus and StandardAero, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	0	4	5	0	2.56
StandardAero	0	6	3	0	2.33

StandardAero has a consensus price target of $32.43, indicating a potential upside of 11.15%. Given StandardAero’s higher possible upside, analysts clearly believe StandardAero is more favorable than Airbus.

Profitability

This table compares Airbus and StandardAero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbus	6.97%	22.55%	3.85%
StandardAero	3.15%	9.63%	3.69%

Earnings & Valuation

This table compares Airbus and StandardAero”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	$74.92 billion	2.44	$4.58 billion	$1.76	32.97
StandardAero	$5.87 billion	1.66	$10.97 million	$0.55	53.05

Airbus has higher revenue and earnings than StandardAero. Airbus is trading at a lower price-to-earnings ratio than StandardAero, indicating that it is currently the more affordable of the two stocks.

Summary

Airbus beats StandardAero on 10 of the 14 factors compared between the two stocks.

About Airbus

Airbus SE, together with its subsidiaries, engages in the design, manufacture, and delivery of aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet passenger aircraft, freighter aircraft, regional turboprop aircraft, and aircraft components, as well as provides aircraft conversion and related services. The Airbus Helicopters segment develops, manufactures, markets, and sells civil and military helicopters; and provides helicopter-related services. The Airbus Defence and Space segment designs, develops, delivers, and supports military air systems and related services. This segment also offers civil and defence space systems for telecommunications, earth observations, navigation, and science and orbital systems; missile and space launcher systems; and services around data processing from platforms, secure communication, and cyber security. The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was incorporated in 1998 and is headquartered in Leiden, the Netherlands.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.