BAE Systems (OTCMKTS:BAESY) and Atlas Copco (OTCMKTS:ATLKY) are both large-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Earnings & Valuation
This table compares BAE Systems and Atlas Copco's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
BAE Systems | $22.52 billion | 0.99 | $1.88 billion | $2.04 | 13.57 |
Atlas Copco | $10.98 billion | 7.15 | $1.75 billion | $1.44 | 44.86 |
BAE Systems has higher revenue and earnings than Atlas Copco. BAE Systems is trading at a lower price-to-earnings ratio than Atlas Copco, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares BAE Systems and Atlas Copco's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
BAE Systems | N/A | N/A | N/A |
Atlas Copco | 14.71% | 26.53% | 12.69% |
Insider & Institutional Ownership
0.3% of BAE Systems shares are owned by institutional investors. Comparatively, 0.6% of Atlas Copco shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Dividends
BAE Systems pays an annual dividend of $0.96 per share and has a dividend yield of 3.5%. Atlas Copco pays an annual dividend of $0.69 per share and has a dividend yield of 1.1%. BAE Systems pays out 47.1% of its earnings in the form of a dividend. Atlas Copco pays out 47.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BAE Systems is clearly the better dividend stock, given its higher yield and lower payout ratio.
Risk & Volatility
BAE Systems has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, Atlas Copco has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and recommmendations for BAE Systems and Atlas Copco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
BAE Systems | 0 | 3 | 10 | 0 | 2.77 |
Atlas Copco | 2 | 6 | 2 | 1 | 2.18 |
Summary
BAE Systems beats Atlas Copco on 8 of the 15 factors compared between the two stocks.