GE Aerospace (GE) & Its Peers Financial Analysis

GE Aerospace (NYSE:GE) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare GE Aerospace to related businesses based on the strength of its institutional ownership, earnings, dividends, risk, profitability, valuation and analyst recommendations.

Profitability

This table compares GE Aerospace and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Aerospace	17.31%	44.43%	6.30%
GE Aerospace Competitors	-278.66%	-46.60%	-4.00%

Risk and Volatility

GE Aerospace has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, GE Aerospace’s competitors have a beta of 1.31, suggesting that their average stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for GE Aerospace and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Aerospace	1	3	16	0	2.75
GE Aerospace Competitors	2156	8261	12769	580	2.50

GE Aerospace currently has a consensus price target of $373.45, indicating a potential upside of 11.58%. As a group, “Aerospace & Defense” companies have a potential upside of 28.41%. Given GE Aerospace’s competitors higher probable upside, analysts plainly believe GE Aerospace has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

74.8% of GE Aerospace shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.2% of GE Aerospace shares are held by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

GE Aerospace pays an annual dividend of $1.88 per share and has a dividend yield of 0.6%. GE Aerospace pays out 21.7% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.5% of their earnings in the form of a dividend. GE Aerospace has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares GE Aerospace and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GE Aerospace	$52.58 billion	$8.70 billion	38.60
GE Aerospace Competitors	$8.47 billion	$569.01 million	25.73

GE Aerospace has higher revenue and earnings than its competitors. GE Aerospace is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

GE Aerospace beats its competitors on 11 of the 15 factors compared.

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.