CAE (NYSE:CAE) & Airbus (OTCMKTS:EADSY) Head-To-Head Contrast

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

Earnings & Valuation

This table compares Airbus and CAE”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	$83.05 billion	2.19	$5.91 billion	$2.19	26.30
CAE	$4.99 billion	1.54	$226.62 million	$0.65	36.89

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbus	7.71%	23.43%	4.41%
CAE	6.36%	7.45%	3.51%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Airbus and CAE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	0	6	7	0	2.54
CAE	1	4	5	0	2.40

CAE has a consensus target price of $31.00, suggesting a potential upside of 29.27%. Given CAE’s higher probable upside, analysts clearly believe CAE is more favorable than Airbus.

Institutional and Insider Ownership

0.3% of Airbus shares are owned by institutional investors. Comparatively, 67.4% of CAE shares are owned by institutional investors. 18.3% of CAE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Airbus pays an annual dividend of $0.72 per share and has a dividend yield of 1.2%. CAE pays an annual dividend of $0.33 per share and has a dividend yield of 1.4%. Airbus pays out 32.9% of its earnings in the form of a dividend. CAE pays out 50.6% 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.

Risk & Volatility

Airbus has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, CAE has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Summary

Airbus beats CAE on 11 of the 16 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 CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.