Comparing Bombardier (OTCMKTS:BDRBF) & Butler National (OTCMKTS:BUKS)

Butler National (OTCMKTS:BUKS) and Bombardier (OTCMKTS:BDRBF) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares Butler National and Bombardier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Butler National	6.01%	10.06%	4.16%
Bombardier	N/A	N/A	N/A

Insider and Institutional Ownership

13.4% of Butler National shares are held by institutional investors. Comparatively, 17.5% of Bombardier shares are held by institutional investors. 16.8% of Butler National shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Butler National and Bombardier’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butler National	$75.18 million	0.75	$4.52 million	$0.06	13.75
Bombardier	N/A	N/A	N/A	$0.25	148.52

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Butler National and Bombardier, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butler National	0	0	0	0	N/A
Bombardier	0	2	3	0	2.60

Bombardier has a consensus price target of $28.72, suggesting a potential downside of 21.47%. Given Bombardier’s higher probable upside, analysts plainly believe Bombardier is more favorable than Butler National.

About Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems worldwide. The company operates in two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications, which include business-size aircraft from passenger to freighter configuration, radar systems, addition of aerial photography capabilities, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, Cessna, and Dassault Falcon aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics upgrades for weapon control systems that are used on aircraft and vehicles; and sells, installs, and repairs avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. The Professional Services segment engages in the management of Boot Hill Casino and Resort, a gaming facility, as well as related dining and entertainment facilities in Dodge City, Kansas. This segment provides architectural services, such as commercial and industrial building design, and engineering services. The company acquires, refurbishes, and sells airplanes, primarily Learjets. It serves the aviation industry, including owners and operators, of private, commercial, regional, business and government aircraft. The company was incorporated in 1960 and is headquartered in New Century, Kansas.

About Bombardier

Bombardier Inc. engages in the manufacture and sale of business aircraft and aircraft structural components in Europe, North America, the Asia Pacific, and internationally. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, smart services, service centers, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.