BA vs. RR, FERG, EXPN, AHT, REL, RTO, QQ, CHG, SNR, and AVON
Should you be buying BAE Systems stock or one of its competitors? The main competitors of BAE Systems include Rolls-Royce Holdings plc (RR), Ferguson (FERG), Experian (EXPN), Ashtead Group (AHT), Relx (REL), Rentokil Initial (RTO), QinetiQ Group (QQ), Chemring Group (CHG), Senior (SNR), and Avon Protection (AVON). These companies are all part of the "industrials" sector.
Rolls-Royce Holdings plc (LON:RR) and BAE Systems (LON:BA) are both large-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, media sentiment, dividends, analyst recommendations, community ranking, institutional ownership and profitability.
Rolls-Royce Holdings plc pays an annual dividend of GBX 12 per share and has a dividend yield of 3.0%. BAE Systems pays an annual dividend of GBX 30 per share and has a dividend yield of 2.3%. Rolls-Royce Holdings plc pays out 4,137.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BAE Systems pays out 5,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Rolls-Royce Holdings plc is clearly the better dividend stock, given its higher yield and lower payout ratio.
Rolls-Royce Holdings plc has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, BAE Systems has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500.
64.1% of Rolls-Royce Holdings plc shares are held by institutional investors. Comparatively, 72.5% of BAE Systems shares are held by institutional investors. 0.1% of Rolls-Royce Holdings plc shares are held by company insiders. Comparatively, 0.4% of BAE Systems shares are held by company 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.
Rolls-Royce Holdings plc has a net margin of 14.63% compared to Rolls-Royce Holdings plc's net margin of 8.05%. Rolls-Royce Holdings plc's return on equity of 17.54% beat BAE Systems' return on equity.
Rolls-Royce Holdings plc presently has a consensus target price of GBX 342.20, indicating a potential downside of 15.65%. BAE Systems has a consensus target price of GBX 1,335, indicating a potential upside of 1.14%. Given Rolls-Royce Holdings plc's stronger consensus rating and higher probable upside, analysts clearly believe BAE Systems is more favorable than Rolls-Royce Holdings plc.
BAE Systems received 29 more outperform votes than Rolls-Royce Holdings plc when rated by MarketBeat users. Likewise, 76.00% of users gave BAE Systems an outperform vote while only 42.86% of users gave Rolls-Royce Holdings plc an outperform vote.
In the previous week, Rolls-Royce Holdings plc had 4 more articles in the media than BAE Systems. MarketBeat recorded 8 mentions for Rolls-Royce Holdings plc and 4 mentions for BAE Systems. BAE Systems' average media sentiment score of 0.45 beat Rolls-Royce Holdings plc's score of 0.23 indicating that Rolls-Royce Holdings plc is being referred to more favorably in the media.
Rolls-Royce Holdings plc has higher earnings, but lower revenue than BAE Systems. Rolls-Royce Holdings plc is trading at a lower price-to-earnings ratio than BAE Systems, indicating that it is currently the more affordable of the two stocks.
Summary
BAE Systems beats Rolls-Royce Holdings plc on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding BA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of LON and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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