RR vs. BA, FERG, EXPN, AHT, RTO, REL, QQ, CHG, SNR, and AVON
Should you be buying Rolls-Royce Holdings plc stock or one of its competitors? The main competitors of Rolls-Royce Holdings plc include BAE Systems (BA), Ferguson (FERG), Experian (EXPN), Ashtead Group (AHT), Rentokil Initial (RTO), Relx (REL), QinetiQ Group (QQ), Chemring Group (CHG), Senior (SNR), and Avon Protection (AVON). These companies are all part of the "industrials" sector.
BAE Systems (LON:BA) and Rolls-Royce Holdings plc (LON:RR) are both large-cap industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, community ranking, profitability, media sentiment, valuation and analyst recommendations.
BAE Systems has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Rolls-Royce Holdings plc has a beta of 1.75, meaning that its share price is 75% more volatile than the S&P 500.
Rolls-Royce Holdings plc has lower revenue, but higher earnings 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.
72.5% of BAE Systems shares are owned by institutional investors. Comparatively, 64.1% of Rolls-Royce Holdings plc shares are owned by institutional investors. 0.4% of BAE Systems shares are owned by company insiders. Comparatively, 0.1% of Rolls-Royce Holdings plc shares are owned by company 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.
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.
BAE Systems currently has a consensus price target of GBX 1,335, indicating a potential downside of 2.09%. Rolls-Royce Holdings plc has a consensus price target of GBX 342.20, indicating a potential downside of 17.94%. Given Rolls-Royce Holdings plc's stronger consensus rating and higher possible upside, analysts clearly believe BAE Systems is more favorable than Rolls-Royce Holdings plc.
In the previous week, Rolls-Royce Holdings plc had 2 more articles in the media than BAE Systems. MarketBeat recorded 8 mentions for Rolls-Royce Holdings plc and 6 mentions for BAE Systems. BAE Systems' average media sentiment score of 0.51 beat Rolls-Royce Holdings plc's score of 0.10 indicating that Rolls-Royce Holdings plc is being referred to more favorably in the news media.
BAE Systems pays an annual dividend of GBX 30 per share and has a dividend yield of 2.2%. Rolls-Royce Holdings plc pays an annual dividend of GBX 12 per share and has a dividend yield of 2.9%. 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 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. Rolls-Royce Holdings plc is clearly the better dividend stock, given its higher yield and lower payout ratio.
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.
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 RR 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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