Comparing AeroVironment (AVAV) and B/E Aerospace (BEAV)

AeroVironment (NASDAQ: AVAV) and B/E Aerospace (NASDAQ:BEAV) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitabiliy, analyst recommendations, valuation, dividends, risk and institutional ownership.

Earnings and Valuation

This table compares AeroVironment and B/E Aerospace’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AeroVironment $224.25 million 3.24 -$7.01 million ($0.55) -57.18
B/E Aerospace N/A N/A N/A $3.08 20.93

B/E Aerospace has higher revenue, but lower earnings than AeroVironment. AeroVironment is trading at a lower price-to-earnings ratio than B/E Aerospace, indicating that it is currently the more affordable of the two stocks.

Dividends

B/E Aerospace pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. AeroVironment does not pay a dividend. B/E Aerospace pays out 27.3% of its earnings in the form of a dividend.

Profitability

This table compares AeroVironment and B/E Aerospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AeroVironment -4.11% -2.52% -2.25%
B/E Aerospace 8.27% 118.81% 7.21%

Volatility & Risk

AeroVironment has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, B/E Aerospace has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for AeroVironment and B/E Aerospace, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AeroVironment 0 5 1 0 2.17
B/E Aerospace 0 10 2 0 2.17

AeroVironment presently has a consensus target price of $27.75, suggesting a potential downside of 11.76%. B/E Aerospace has a consensus target price of $59.57, suggesting a potential downside of 7.60%. Given B/E Aerospace’s higher probable upside, analysts clearly believe B/E Aerospace is more favorable than AeroVironment.

Insider & Institutional Ownership

82.7% of AeroVironment shares are held by institutional investors. Comparatively, 92.0% of B/E Aerospace shares are held by institutional investors. 12.5% of AeroVironment shares are held by insiders. Comparatively, 0.5% of B/E Aerospace shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

B/E Aerospace beats AeroVironment on 8 of the 12 factors compared between the two stocks.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD). The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers.

About B/E Aerospace

B/E Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets. The Company sells its products and provides services directly to airlines and aerospace manufacturer. It operates through two segments. The Company manufactures aircraft seats, offering a selection of first class, business class, tourist class and regional aircraft seats. It manufactures and sells seats, which include the seat frame, cushions, armrests, tray table and a range of optional features, such as adjustable lumbar supports, electrical actuation systems, footrests, reading lights, head/neck supports and other comfort amenities. The business jet segment’s products include a range of business jet seating and sofa products, including electric fully berthing lie-flat seats, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables.

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