Head-To-Head Comparison: MTU Aero Engines (OTCMKTS:MTUAY) & GE Aerospace (NYSE:GE)

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

Dividends

GE Aerospace pays an annual dividend of $1.44 per share and has a dividend yield of 0.5%. MTU Aero Engines pays an annual dividend of $0.83 per share and has a dividend yield of 0.4%. GE Aerospace pays out 20.1% of its earnings in the form of a dividend. MTU Aero Engines pays out 9.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. GE Aerospace has increased its dividend for 2 consecutive years. GE Aerospace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for GE Aerospace and MTU Aero Engines, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Aerospace	0	1	11	0	2.92
MTU Aero Engines	0	2	1	1	2.75

GE Aerospace presently has a consensus target price of $241.92, indicating a potential downside of 18.58%. Given GE Aerospace’s stronger consensus rating and higher possible upside, equities research analysts clearly believe GE Aerospace is more favorable than MTU Aero Engines.

Risk & Volatility

GE Aerospace has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, MTU Aero Engines has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GE Aerospace	18.64%	31.32%	4.86%
MTU Aero Engines	10.60%	24.07%	7.30%

Earnings & Valuation

This table compares GE Aerospace and MTU Aero Engines”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Aerospace	$38.70 billion	8.14	$6.56 billion	$7.17	41.44
MTU Aero Engines	$8.02 billion	2.87	$684.97 million	$8.66	24.72

GE Aerospace has higher revenue and earnings than MTU Aero Engines. MTU Aero Engines is trading at a lower price-to-earnings ratio than GE Aerospace, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.8% of GE Aerospace shares are owned by institutional investors. Comparatively, 0.0% of MTU Aero Engines shares are owned by institutional investors. 0.2% of GE Aerospace shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

GE Aerospace beats MTU Aero Engines on 14 of the 18 factors compared between the two stocks.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.

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.