CAE (NYSE:CAE – Get Free Report) and Woodward (NASDAQ:WWD – Get Free Report) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Dividends
CAE pays an annual dividend of $0.33 per share and has a dividend yield of 1.3%. Woodward pays an annual dividend of $1.12 per share and has a dividend yield of 0.4%. CAE pays out 33.9% of its earnings in the form of a dividend. Woodward pays out 17.7% 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. Woodward has raised its dividend for 5 consecutive years.
Analyst Ratings
This is a breakdown of current ratings and target prices for CAE and Woodward, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CAE | 1 | 5 | 5 | 2 | 2.62 |
| Woodward | 0 | 4 | 8 | 0 | 2.67 |
Risk & Volatility
CAE has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Woodward has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Insider & Institutional Ownership
67.4% of CAE shares are owned by institutional investors. Comparatively, 81.2% of Woodward shares are owned by institutional investors. 18.3% of CAE shares are owned by insiders. Comparatively, 0.8% of Woodward shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares CAE and Woodward’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CAE | 8.70% | 7.92% | 3.51% |
| Woodward | 11.32% | 16.57% | 8.53% |
Earnings and Valuation
This table compares CAE and Woodward”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CAE | $4.83 billion | 1.74 | $291.29 million | $0.97 | 26.90 |
| Woodward | $3.43 billion | 4.63 | $372.97 million | $6.32 | 41.82 |
Woodward has lower revenue, but higher earnings than CAE. CAE is trading at a lower price-to-earnings ratio than Woodward, indicating that it is currently the more affordable of the two stocks.
Summary
Woodward beats CAE on 12 of the 18 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 Woodward
Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.
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