Head to Head Comparison: Safran (OTCMKTS:SAFRY) versus MTU Aero Engines (OTCMKTS:MTUAY)

Safran (OTCMKTS:SAFRY) and MTU Aero Engines (OTCMKTS:MTUAY) are both large-cap aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, analyst recommendations, institutional ownership, dividends, valuation and profitability.

Insider and Institutional Ownership

0.1% of Safran shares are held by institutional investors. Comparatively, 0.0% of MTU Aero Engines shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Safran pays an annual dividend of $0.55 per share and has a dividend yield of 0.6%. MTU Aero Engines pays an annual dividend of $0.83 per share and has a dividend yield of 0.4%. MTU Aero Engines pays out 9.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Safran and MTU Aero Engines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Safran	0	2	2	1	2.80
MTU Aero Engines	0	0	0	2	4.00

Profitability

This table compares Safran and MTU Aero Engines’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Safran	N/A	N/A	N/A
MTU Aero Engines	10.60%	26.39%	7.27%

Volatility & Risk

Safran has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Valuation & Earnings

This table compares Safran and MTU Aero Engines”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Safran	$30.47 billion	4.72	-$721.76 million	N/A	N/A
MTU Aero Engines	$8.02 billion	3.05	$684.97 million	$8.66	26.27

MTU Aero Engines has lower revenue, but higher earnings than Safran.

Summary

MTU Aero Engines beats Safran on 7 of the 13 factors compared between the two stocks.

About Safran

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, satellites, and drones; and offers maintenance, repair, and overhaul (MRO) services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; nacelles and reversers; avionics, such as flight controls and onboard information systems; security systems, including evacuation slides and oxygen masks; onboard computers and fuel systems; electrical power management systems and related engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as offers MRO services and sells spare parts. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and cabin and passenger solutions, such as water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Its products and services are used in civil and military aircraft, and helicopters. Safran SA was founded in 1896 and is based in Paris, France.

About MTU Aero Engines

MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.