Contrasting Boeing (NYSE:BA) & Virgin Galactic (NYSE:SPCE)

Boeing (NYSE:BA) and Virgin Galactic (NYSE:SPCE) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Earnings and Valuation

This table compares Boeing and Virgin Galactic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boeing	$66.52 billion	2.28	-$11.82 billion	($17.92)	-11.22
Virgin Galactic	$7.04 million	17.33	-$346.74 million	($11.93)	-0.25

Virgin Galactic has lower revenue, but higher earnings than Boeing. Boeing is trading at a lower price-to-earnings ratio than Virgin Galactic, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

64.8% of Boeing shares are owned by institutional investors. Comparatively, 46.6% of Virgin Galactic shares are owned by institutional investors. 0.1% of Boeing shares are owned by insiders. Comparatively, 0.4% of Virgin Galactic shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Boeing and Virgin Galactic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boeing	3	3	16	1	2.65
Virgin Galactic	1	2	1	0	2.00

Boeing currently has a consensus price target of $209.85, suggesting a potential upside of 4.38%. Virgin Galactic has a consensus price target of $13.06, suggesting a potential upside of 345.06%. Given Virgin Galactic’s higher possible upside, analysts clearly believe Virgin Galactic is more favorable than Boeing.

Risk and Volatility

Boeing has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Virgin Galactic has a beta of 2.14, meaning that its stock price is 114% more volatile than the S&P 500.

Profitability

This table compares Boeing and Virgin Galactic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boeing	-16.58%	N/A	-8.57%
Virgin Galactic	-5,972.70%	-97.17%	-33.39%

Summary

Boeing beats Virgin Galactic on 8 of the 15 factors compared between the two stocks.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. 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 products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.

About Virgin Galactic

Virgin Galactic Holdings, Inc., an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. is headquartered in Tustin, California.