Head to Head Contrast: Saab (SAABY) vs. The Competition

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

Earnings & Valuation

This table compares Saab and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Saab	$6.03 billion	$394.58 million	68.55
Saab Competitors	$3.44 billion	$265.50 million	78.90

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Saab and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	1	0	0	1	2.50
Saab Competitors	348	1807	2762	95	2.52

As a group, “AEROSP/DEF EQ” companies have a potential downside of 2.30%. Given Saab’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Saab has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

65.1% of shares of all “AEROSP/DEF EQ” companies are held by institutional investors. 8.7% of shares of all “AEROSP/DEF EQ” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Saab and its competitors’ 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	-42.27%	-0.19%	3.44%

Volatility & Risk

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

Dividends

Saab pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. Saab pays out 17.5% of its earnings in the form of a dividend. As a group, “AEROSP/DEF EQ” companies pay a dividend yield of 0.4% and pay out 20.1% of their earnings in the form of a dividend.

Summary

Saab competitors beat Saab on 8 of the 15 factors compared.

About Saab

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.