Comparing Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) & Butler National (OTCMKTS:BUKS)

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) and Butler National (OTCMKTS:BUKS) are both aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

34.7% of Embraer-Empresa Brasileira de Aeronautica shares are held by institutional investors. Comparatively, 5.0% of Butler National shares are held by institutional investors. 1.0% of Embraer-Empresa Brasileira de Aeronautica shares are held by insiders. Comparatively, 17.6% of Butler National shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Embraer-Empresa Brasileira de Aeronautica has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Butler National has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Profitability

This table compares Embraer-Empresa Brasileira de Aeronautica and Butler National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embraer-Empresa Brasileira de Aeronautica	4.34%	8.24%	2.46%
Butler National	19.02%	24.93%	12.84%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Embraer-Empresa Brasileira de Aeronautica and Butler National, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer-Empresa Brasileira de Aeronautica	1	2	6	1	2.70
Butler National	0	0	0	0	0.00

Embraer-Empresa Brasileira de Aeronautica presently has a consensus price target of $63.86, suggesting a potential downside of 10.69%. Given Embraer-Empresa Brasileira de Aeronautica’s stronger consensus rating and higher possible upside, equities analysts plainly believe Embraer-Empresa Brasileira de Aeronautica is more favorable than Butler National.

Earnings and Valuation

This table compares Embraer-Empresa Brasileira de Aeronautica and Butler National”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embraer-Empresa Brasileira de Aeronautica	$6.39 billion	N/A	$352.50 million	$1.72	41.57
Butler National	$83.97 million	2.84	$12.55 million	$0.25	11.92

Embraer-Empresa Brasileira de Aeronautica has higher revenue and earnings than Butler National. Butler National is trading at a lower price-to-earnings ratio than Embraer-Empresa Brasileira de Aeronautica, indicating that it is currently the more affordable of the two stocks.

Summary

Embraer-Empresa Brasileira de Aeronautica beats Butler National on 10 of the 14 factors compared between the two stocks.

About Embraer-Empresa Brasileira de Aeronautica

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft. The Defense & Security segment engages in the research, development, production, modification, and support for military defense and security aircraft; and offers a range of products and integrated solutions that include radars, special space systems, and cyber security solutions, as well as information and communications systems comprising command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. This segment also leases Phenom family executive jets in the entry jet and light jet categories; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories. The Service & Support segment provides after-service solutions and support services; maintenance, repair, and overhaul services for commercial, executive, and defense aircraft; and aircraft components and engines. This segment also supplies steel and composite aviation structures to various aircraft manufacturers. The Other segment engages in the supply of fuel systems, structural parts, and mechanical and hydraulic systems; and production of agricultural crop-spraying aircraft. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was incorporated in 1969 and is headquartered in São Paulo, Brazil.

About Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.