Airbus (OTCMKTS:EADSY) and L'Oréal (OTCMKTS:LRLCY) are both large-cap aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
0.1% of Airbus shares are held by institutional investors. Comparatively, 0.7% of L'Oréal shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Airbus and L'Oréal, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Airbus | 2 | 5 | 9 | 0 | 2.44 |
L'Oréal | 2 | 3 | 8 | 0 | 2.46 |
L'Oréal has a consensus price target of $76.00, indicating a potential upside of 2.38%. Given L'Oréal's stronger consensus rating and higher possible upside, analysts plainly believe L'Oréal is more favorable than Airbus.
Volatility & Risk
Airbus has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, L'Oréal has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500.
Valuation & Earnings
This table compares Airbus and L'Oréal's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Airbus | $78.94 billion | 1.18 | $-1,525,440,000.00 | $1.28 | 23.21 |
L'Oréal | $33.46 billion | 6.20 | $4.20 billion | $1.25 | 59.38 |
L'Oréal has lower revenue, but higher earnings than Airbus. Airbus is trading at a lower price-to-earnings ratio than L'Oréal, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Airbus and L'Oréal's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Airbus | -11.39% | -27.79% | -0.78% |
L'Oréal | N/A | N/A | N/A |
Summary
L'Oréal beats Airbus on 9 of the 13 factors compared between the two stocks.