Head to Head Comparison: CAE (NYSE:CAE) and Alabama Aircraft Industries (OTCMKTS:AAIIQ)

CAE (NYSE:CAE) and Alabama Aircraft Industries (OTCMKTS:AAIIQ) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Insider and Institutional Ownership

67.4% of CAE shares are held by institutional investors. 18.3% of CAE shares are held by company insiders. Comparatively, 38.0% of Alabama Aircraft Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares CAE and Alabama Aircraft Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAE	8.70%	7.92%	3.51%
Alabama Aircraft Industries	N/A	N/A	N/A

Earnings and Valuation

This table compares CAE and Alabama Aircraft Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAE	$3.28 billion	2.77	$291.29 million	$0.92	30.79
Alabama Aircraft Industries	N/A	N/A	N/A	N/A	N/A

CAE has higher revenue and earnings than Alabama Aircraft Industries.

Analyst Ratings

This is a summary of recent recommendations and price targets for CAE and Alabama Aircraft Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAE	0	4	5	2	2.82
Alabama Aircraft Industries	0	0	0	0	0.00

CAE presently has a consensus target price of $33.67, indicating a potential upside of 18.84%. Given CAE’s stronger consensus rating and higher possible upside, analysts clearly believe CAE is more favorable than Alabama Aircraft Industries.

Summary

CAE beats Alabama Aircraft Industries on 9 of the 10 factors compared between the two stocks.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.

About Alabama Aircraft Industries

Alabama Aircraft Industries, Inc provides aircraft maintenance and modification services to the United States government, foreign governments, and military customers. Its services include maintenance and modification of military transport, tanker, and petrol aircraft airframes; and aircraft maintenance and modification services, such as complete airframe maintenance and repair, and custom air frame design and modification. The company’s services also comprise scheduled and unscheduled maintenance; interior refurbishment and reconfiguration; lavatory, galley, airstair, and auxiliary fuel tank installations; aging aircraft inspection; structural and accident damage repair; manufacturing and parts fabrication; composite repair; service bulletin and AD compliance; component repair and overhaul; EPA approved stripping and painting; CPCP; non-destructive testing; avionics upgrades and installation; and FAA repair station RJ1R454K. Its principal services performed under military contracts are programmed depot maintenance, aircraft modifications, aircraft stripping and painting, rewiring, parts fabrication, engineering support services, system integration of component upgrades, and modification of fixed wing aircrafts. In addition, the company offers airframe corrosion prevention and control, rewiring, and component overhauls, as well as structural, avionics, and other systems modification services. It provides its services directly as a prime contractor or indirectly as a sub- contractor. The company was formerly known as Pemco Aviation Group, Inc. and changed its name to Alabama Aircraft Industries Inc. in September 2007. Alabama Aircraft Industries, Inc was founded in 1983 and is based in Birmingham, Alabama. On Nov 3, 2011, the voluntary petition of Alabama Aircraft Industries, Inc., along with its affiliates, for reorganization under Ch 11 was converted to Ch 7. It had filed for Chapter 11 bankruptcy on Feb 15, 2011.