Esterline Technologies (NYSE: ESL) and Boeing (NYSE:BA) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
This is a breakdown of current ratings and recommmendations for Esterline Technologies and Boeing, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Esterline Technologies presently has a consensus price target of $79.71, suggesting a potential upside of 3.93%. Boeing has a consensus price target of $360.95, suggesting a potential upside of 7.08%. Given Boeing’s stronger consensus rating and higher possible upside, analysts clearly believe Boeing is more favorable than Esterline Technologies.
Valuation and Earnings
This table compares Esterline Technologies and Boeing’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Esterline Technologies||$2.00 billion||1.14||$117.38 million||$2.22||34.55|
|Boeing||$93.39 billion||2.12||$8.20 billion||$13.47||25.03|
Boeing has higher revenue and earnings than Esterline Technologies. Boeing is trading at a lower price-to-earnings ratio than Esterline Technologies, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
95.0% of Esterline Technologies shares are held by institutional investors. Comparatively, 70.8% of Boeing shares are held by institutional investors. 1.3% of Esterline Technologies shares are held by company insiders. Comparatively, 0.3% of Boeing shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Boeing pays an annual dividend of $6.84 per share and has a dividend yield of 2.0%. Esterline Technologies does not pay a dividend. Boeing pays out 50.8% of its earnings in the form of a dividend. Boeing has increased its dividend for 6 consecutive years.
This table compares Esterline Technologies and Boeing’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Esterline Technologies 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 1.37, indicating that its share price is 37% more volatile than the S&P 500.
Boeing beats Esterline Technologies on 12 of the 17 factors compared between the two stocks.
Esterline Technologies Company Profile
Esterline Technologies Corporation is a specialized manufacturing company. The Company designs, manufactures and markets engineered products and systems for application within the industries it serves. The Company operates through three segments: Avionics & Controls, Sensors & Systems, and Advanced Materials. The Company serves aerospace and defense customers. The Company’s Avionics & Controls business segment includes avionics systems, control and communication systems, and interface technologies capabilities. The Company’s Sensors & Systems business segment includes power systems, connection technologies and advanced sensors capabilities. The Company’s Advanced Materials business segment includes engineered materials and defense technologies capabilities. The Company designs and manufactures ruggedized military personal communication equipment, primarily headsets, handsets and field communications.
Boeing Company Profile
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. The Commercial Airplanes segment provides commercial jet aircraft for passenger and cargo requirements, and fleet support services, principally to the commercial airline industry. 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 aviation services support, aircraft modifications, spare parts, training, maintenance documents, data analytics and information-based services, and technical advice to commercial and government customers. This segment also provides supply chain management and engineering support services; maintenance, modification, and upgrades for aircraft; and training systems and government services, that include pilot and maintenance training. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating and finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was founded in 1916 and is headquartered in Chicago, Illinois.
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