Reviewing Airbus (OTCMKTS:EADSY) & Boeing (NYSE:BA)

Airbus (OTCMKTS:EADSY) and Boeing (NYSE:BA) are both large-cap aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.

Volatility and Risk

Airbus has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, Boeing has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Valuation & Earnings

This table compares Airbus and Boeing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	$74.92 billion	2.52	$4.58 billion	$1.69	35.24
Boeing	$66.52 billion	2.46	-$11.82 billion	($16.51)	-13.10

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Airbus	7.01%	24.38%	3.85%
Boeing	-14.18%	N/A	-7.78%

Analyst Recommendations

This is a summary of recent recommendations for Airbus and Boeing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	0	3	5	1	2.78
Boeing	3	3	18	3	2.78

Boeing has a consensus price target of $233.91, indicating a potential upside of 8.13%. Given Boeing’s higher possible upside, analysts plainly believe Boeing is more favorable than Airbus.

Insider and Institutional Ownership

0.3% of Airbus shares are owned by institutional investors. Comparatively, 64.8% of Boeing shares are owned by institutional investors. 0.1% of Boeing 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.

Summary

Airbus beats Boeing on 8 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 Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.