Contrasting Dassault Aviation Société anonyme (OTCMKTS:DUAVF) & Bombardier (OTCMKTS:BDRBF)

Bombardier (OTCMKTS:BDRBF – Get Rating) and Dassault Aviation Société anonyme (OTCMKTS:DUAVF – Get Rating) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Profitability

This table compares Bombardier and Dassault Aviation Société anonyme’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bombardier	N/A	N/A	N/A
Dassault Aviation Société anonyme	N/A	N/A	N/A

Valuation & Earnings

This table compares Bombardier and Dassault Aviation Société anonyme’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bombardier	N/A	N/A	N/A	$0.25	206.35
Dassault Aviation Société anonyme	N/A	N/A	N/A	$53.82	3.14

Dassault Aviation Société anonyme is trading at a lower price-to-earnings ratio than Bombardier, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for Bombardier and Dassault Aviation Société anonyme, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bombardier	0	2	6	0	2.75
Dassault Aviation Société anonyme	0	5	3	0	2.38

Bombardier presently has a consensus price target of $70.13, suggesting a potential upside of 38.01%. Dassault Aviation Société anonyme has a consensus price target of $187.50, suggesting a potential upside of 10.91%. Given Bombardier’s stronger consensus rating and higher probable upside, analysts clearly believe Bombardier is more favorable than Dassault Aviation Société anonyme.

Dividends

Bombardier pays an annual dividend of $0.09 per share and has a dividend yield of 0.2%. Dassault Aviation Société anonyme pays an annual dividend of $8.90 per share and has a dividend yield of 5.3%. Bombardier pays out 37.6% of its earnings in the form of a dividend. Dassault Aviation Société anonyme pays out 16.5% 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. Dassault Aviation Société anonyme is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

17.5% of Bombardier shares are owned by institutional investors. Comparatively, 0.7% of Dassault Aviation Société anonyme shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Bombardier beats Dassault Aviation Société anonyme on 5 of the 8 factors compared between the two stocks.

About Bombardier

(Get Rating)

Bombardier, Inc. engages in the design, development, and manufacture of business aircraft. It operates through the Business Aircraft Segment and Customer Services Segment. The Business Aircraft segment includes the manufacture of three families of business jets spanning from the light to large categories. Its models include: Global, Challenger, and Learjet aircraft. The Customer Services segment offers aircraft maintenance services as well as value added packages, including refurbishment and modification of business aircraft, component repair, and overhaul services. The company was founded on June 19, 1902 and is headquartered in Dorval, Canada.

About Dassault Aviation Société anonyme

(Get Rating)

Dassault Aviation SA is a aerospace company, which engages in the manufacture and sale of military and executive aircrafts and business jets. Its products include falcon business jets, falcon support services, civil aircraft, military aircraft, and military support. The company was founded by Marcel Bloch in 1929 and is headquartered in Paris, France.