CAE Inc. (CAE.TO) (TSE:CAE) and PrairieSky Royalty (TSE:PSK) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, institutional ownership, analyst recommendations and risk.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for CAE Inc. (CAE.TO) and PrairieSky Royalty, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
CAE Inc. (CAE.TO) | 0 | 6 | 1 | 0 | 2.14 |
PrairieSky Royalty | 0 | 6 | 4 | 0 | 2.40 |
CAE Inc. (CAE.TO) currently has a consensus price target of C$33.00, suggesting a potential downside of 13.11%. PrairieSky Royalty has a consensus price target of C$13.03, suggesting a potential upside of 1.05%. Given PrairieSky Royalty's stronger consensus rating and higher possible upside, analysts plainly believe PrairieSky Royalty is more favorable than CAE Inc. (CAE.TO).
Dividends
CAE Inc. (CAE.TO) pays an annual dividend of C$0.11 per share and has a dividend yield of 0.3%. PrairieSky Royalty pays an annual dividend of C$0.38 per share and has a dividend yield of 2.9%. CAE Inc. (CAE.TO) pays out 282.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PrairieSky Royalty pays out 271.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PrairieSky Royalty is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares CAE Inc. (CAE.TO) and PrairieSky Royalty's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
CAE Inc. (CAE.TO) | C$3.06 billion | 3.50 | C$11.03 million | C$0.04 | 973.85 |
PrairieSky Royalty | C$159.70 million | 18.02 | C$30.82 million | C$0.14 | 93.41 |
PrairieSky Royalty has lower revenue, but higher earnings than CAE Inc. (CAE.TO). PrairieSky Royalty is trading at a lower price-to-earnings ratio than CAE Inc. (CAE.TO), indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CAE Inc. (CAE.TO) and PrairieSky Royalty's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
CAE Inc. (CAE.TO) | N/A | N/A | N/A |
PrairieSky Royalty | N/A | N/A | N/A |
Summary
PrairieSky Royalty beats CAE Inc. (CAE.TO) on 8 of the 10 factors compared between the two stocks.