Boeing (BA) and Bba Aviation (BBAVY) Financial Survey

Boeing (NYSE: BA) and Bba Aviation (OTCMKTS:BBAVY) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.

Profitability

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This table compares Boeing and Bba Aviation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boeing 8.78% -11,050.62% 8.10%
Bba Aviation N/A N/A N/A

Institutional & Insider Ownership

70.8% of Boeing shares are held by institutional investors. Comparatively, 0.1% of Bba Aviation shares are held by institutional investors. 0.2% of Boeing shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Boeing and Bba Aviation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boeing $93.39 billion 2.05 $8.20 billion $12.04 27.09
Bba Aviation $2.37 billion 1.94 $119.40 million $0.96 23.20

Boeing has higher revenue and earnings than Bba Aviation. Bba Aviation is trading at a lower price-to-earnings ratio than Boeing, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Boeing has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Bba Aviation has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Boeing and Bba Aviation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boeing 0 9 15 0 2.63
Bba Aviation 0 1 1 0 2.50

Boeing presently has a consensus target price of $368.59, suggesting a potential upside of 13.02%. Given Boeing’s stronger consensus rating and higher probable upside, research analysts plainly believe Boeing is more favorable than Bba Aviation.

Dividends

Boeing pays an annual dividend of $6.84 per share and has a dividend yield of 2.1%. Bba Aviation pays an annual dividend of $0.17 per share and has a dividend yield of 0.8%. Boeing pays out 56.8% of its earnings in the form of a dividend. Bba Aviation pays out 17.7% 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. Boeing has increased its dividend for 6 consecutive years. Boeing is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Boeing beats Bba Aviation on 13 of the 16 factors compared between the two stocks.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. The Commercial Airplanes segment provides commercial jet aircraft for passenger and cargo requirements, and fleet support services, principally to the commercial airline industry. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, data analytics and information-based services, and technical advice to commercial and government customers. This segment also provides supply chain management and engineering support services; maintenance, modification, and upgrades for aircraft; and training systems and government services, that include pilot and maintenance training. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating and finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was founded in 1916 and is headquartered in Chicago, Illinois.

About Bba Aviation

BBA Aviation plc provides aviation support and aftermarket services to the business and general aviation (B&GA) markets in the United Kingdom, Mainland Europe, North America, and internationally. It operates through Flight Support and Aftermarket Services segments. The company operates Signature Flight Support, a fixed base operation network that offers service support for B&GA travel, including office rentals and other technical services, fuelling, ground handling, passenger and pilot services, and amenities; hangarage for resting and at home aircraft; technical support, line maintenance, and aircraft on ground services through Signature TECHNICAir; and aircraft management and charter services through Gama Aviation Signature Aircraft Management to the passengers, operators, and pilots of the B&GA fleet. It also provides a portfolio of licensed parts and MRO services, including equipment, components, and spare parts for maturing and legacy platforms; transforms on-core products from original equipment manufacturers (OEMs); and provides maintenance, repair, and overhaul services for commercial, B&GA, and military fixed wing and rotorcraft platforms to original equipment manufacturers (OEMs) and their customers. In addition, the company offers engine repair and overhaul services, such as full engine overhaul, scheduled engine repair, on-wing in-field repair, aircraft-on-ground support, engine accessory part, and component repair services to private and commercial operators of aircrafts in the B&GA, regional airline, and rotorcraft fleets. BBA Aviation plc was founded in 1879 and is headquartered in London, the United Kingdom.

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