CAE (NYSE:CAE – Get Free Report) and Astronics (OTCMKTS:ATROB – Get Free Report) are both mid-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
Profitability
This table compares CAE and Astronics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAE | 7.70% | 7.75% | 3.57% |
| Astronics | -0.37% | 29.65% | 10.15% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for CAE and Astronics, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAE | 0 | 5 | 4 | 2 | 2.73 |
| Astronics | 0 | 0 | 0 | 0 | 0.00 |
Valuation and Earnings
This table compares CAE and Astronics”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAE | $3.28 billion | 2.86 | $291.29 million | $0.83 | 35.05 |
| Astronics | $795.43 million | 3.41 | -$16.22 million | ($0.09) | -845.61 |
CAE has higher revenue and earnings than Astronics. Astronics is trading at a lower price-to-earnings ratio than CAE, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
67.4% of CAE shares are held by institutional investors. 18.3% of CAE shares are held by company insiders. Comparatively, 16.0% of Astronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Risk & Volatility
CAE has a beta of 1.11, indicating that its stock price is 11% more volatile than the S&P 500. Comparatively, Astronics has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.
Summary
CAE beats Astronics on 12 of the 15 factors compared between the two stocks.
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.
About Astronics
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.
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