Comparing Saab (SAABY) and Its Rivals

Saab (OTCMKTS:SAABY) is one of 46 public companies in the “AEROSP/DEF EQ” industry, but how does it compare to its rivals? We will compare Saab to similar businesses based on the strength of its analyst recommendations, valuation, earnings, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current ratings and price targets for Saab and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	0	0	0	1	4.00
Saab Competitors	347	1805	2747	92	2.52

As a group, “AEROSP/DEF EQ” companies have a potential upside of 0.90%. Given Saab’s rivals higher possible upside, analysts plainly believe Saab has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Saab and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Saab	$6.03 billion	$394.58 million	64.48
Saab Competitors	$3.53 billion	$275.42 million	73.04

Saab has higher revenue and earnings than its rivals. Saab is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Saab and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab	7.14%	12.81%	4.86%
Saab Competitors	-42.63%	-0.30%	3.35%

Institutional & Insider Ownership

65.1% of shares of all “AEROSP/DEF EQ” companies are owned by institutional investors. 8.7% of shares of all “AEROSP/DEF EQ” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Saab pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Saab pays out 15.0% of its earnings in the form of a dividend. As a group, “AEROSP/DEF EQ” companies pay a dividend yield of 0.5% and pay out 23.6% of their earnings in the form of a dividend.

Volatility and Risk

Saab has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Saab’s rivals have a beta of 0.93, meaning that their average share price is 7% less volatile than the S&P 500.

Summary

Saab beats its rivals on 8 of the 15 factors compared.

Saab Company Profile

Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.