Reviewing Airbus (OTCMKTS:EADSY) & MTU Aero Engines (OTCMKTS:MTUAY)

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

Institutional and Insider Ownership

0.3% of Airbus shares are owned by institutional investors. Comparatively, 0.0% of MTU Aero Engines shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Airbus and MTU Aero Engines, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	0	4	5	0	2.56
MTU Aero Engines	0	3	2	2	2.86

Earnings & Valuation

This table compares Airbus and MTU Aero Engines”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	$74.92 billion	2.40	$4.58 billion	$1.76	32.30
MTU Aero Engines	$8.02 billion	2.77	$684.97 million	$9.23	22.36

Airbus has higher revenue and earnings than MTU Aero Engines. MTU Aero Engines 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 MTU Aero Engines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbus	6.97%	22.55%	3.85%
MTU Aero Engines	10.79%	25.61%	7.77%

Risk & Volatility

Airbus has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Dividends

Airbus pays an annual dividend of $0.41 per share and has a dividend yield of 0.7%. MTU Aero Engines pays an annual dividend of $0.83 per share and has a dividend yield of 0.4%. Airbus pays out 23.3% of its earnings in the form of a dividend. MTU Aero Engines pays out 9.0% 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.

Summary

MTU Aero Engines beats Airbus on 9 of the 15 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 MTU Aero Engines

MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.