Critical Survey: Boeing (NYSE:BA) versus StandardAero (NYSE:SARO)

StandardAero (NYSE:SARO) and Boeing (NYSE:BA) are both large-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Institutional and Insider Ownership

64.8% of Boeing shares are owned by institutional investors. 1.9% of StandardAero shares are owned by insiders. Comparatively, 0.1% of Boeing shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares StandardAero and Boeing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	3.15%	9.63%	3.69%
Boeing	2.40%	N/A	-5.40%

Valuation & Earnings

This table compares StandardAero and Boeing”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$5.24 billion	1.91	$10.97 million	$0.55	54.41
Boeing	$89.46 billion	2.08	$2.24 billion	$2.01	117.74

Boeing has higher revenue and earnings than StandardAero. StandardAero is trading at a lower price-to-earnings ratio than Boeing, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

StandardAero has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Boeing has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for StandardAero and Boeing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	1	5	4	0	2.30
Boeing	3	5	17	1	2.62

StandardAero presently has a consensus price target of $34.00, indicating a potential upside of 13.61%. Boeing has a consensus price target of $246.14, indicating a potential upside of 4.01%. Given StandardAero’s higher probable upside, equities analysts plainly believe StandardAero is more favorable than Boeing.

Summary

Boeing beats StandardAero on 10 of the 15 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.