Analyzing Boeing (NYSE:BA) and StandardAero (NYSE:SARO)

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

Analyst Recommendations

This is a breakdown of current ratings for Boeing and StandardAero, as reported by MarketBeat.

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

Boeing currently has a consensus target price of $246.14, indicating a potential upside of 0.54%. StandardAero has a consensus target price of $34.00, indicating a potential upside of 9.93%. Given StandardAero’s higher probable upside, analysts clearly believe StandardAero is more favorable than Boeing.

Insider and Institutional Ownership

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

Risk and Volatility

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boeing	$89.46 billion	2.15	$2.24 billion	$2.01	121.80
StandardAero	$5.24 billion	1.98	$10.97 million	$0.55	56.24

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.

Profitability

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

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

Summary

Boeing beats StandardAero on 11 of the 15 factors compared between the two stocks.

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.

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.