Contrasting Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) & Saab (OTCMKTS:SAABY)

Saab (OTCMKTS:SAABY) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) are both large-cap aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Saab and Rolls-Royce Holdings PLC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	1	1	0	1	2.33
Rolls-Royce Holdings PLC	0	2	0	1	2.67

Profitability

This table compares Saab and Rolls-Royce Holdings PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab	7.45%	13.82%	5.19%
Rolls-Royce Holdings PLC	N/A	N/A	N/A

Institutional & Insider Ownership

0.1% of Rolls-Royce Holdings PLC shares are owned 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.

Earnings & Valuation

This table compares Saab and Rolls-Royce Holdings PLC”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saab	$6.03 billion	5.02	$394.58 million	$0.61	46.38
Rolls-Royce Holdings PLC	$24.16 billion	5.05	$3.22 billion	N/A	N/A

Rolls-Royce Holdings PLC has higher revenue and earnings than Saab.

Dividends

Saab pays an annual dividend of $0.07 per share and has a dividend yield of 0.2%. Rolls-Royce Holdings PLC pays an annual dividend of $0.14 per share and has a dividend yield of 1.0%. Saab pays out 11.5% of its earnings in the form of a dividend.

Summary

Rolls-Royce Holdings PLC beats Saab on 7 of the 10 factors compared between the two stocks.

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.

About Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.