Comparing Boeing (NYSE:BA) & L3Harris Technologies (NYSE:LHX)

L3Harris Technologies (NYSE:LHX) and Boeing (NYSE:BA) are both large-cap aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for L3Harris Technologies and Boeing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
L3Harris Technologies	0	7	12	0	2.63
Boeing	6	3	15	3	2.56

L3Harris Technologies currently has a consensus target price of $295.00, suggesting a potential upside of 6.75%. Boeing has a consensus target price of $232.09, suggesting a potential upside of 24.18%. Given Boeing’s higher possible upside, analysts clearly believe Boeing is more favorable than L3Harris Technologies.

Insider and Institutional Ownership

84.8% of L3Harris Technologies shares are owned by institutional investors. Comparatively, 64.8% of Boeing shares are owned by institutional investors. 0.7% of L3Harris Technologies shares are owned by company insiders. Comparatively, 0.1% of Boeing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

L3Harris Technologies has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Boeing has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Valuation & Earnings

This table compares L3Harris Technologies and Boeing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
L3Harris Technologies	$21.74 billion	2.38	$1.50 billion	$9.31	29.68
Boeing	$80.76 billion	1.76	-$11.82 billion	($13.68)	-13.66

L3Harris Technologies has higher earnings, but lower revenue than Boeing. Boeing is trading at a lower price-to-earnings ratio than L3Harris Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

L3Harris Technologies pays an annual dividend of $4.80 per share and has a dividend yield of 1.7%. Boeing pays an annual dividend of $8.22 per share and has a dividend yield of 4.4%. L3Harris Technologies pays out 51.6% of its earnings in the form of a dividend. Boeing pays out -60.1% 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. L3Harris Technologies has raised its dividend for 24 consecutive years. Boeing is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares L3Harris Technologies and Boeing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
L3Harris Technologies	7.94%	11.82%	5.47%
Boeing	-12.31%	N/A	-7.11%

Summary

L3Harris Technologies beats Boeing on 11 of the 18 factors compared between the two stocks.

About L3Harris Technologies

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, and networks and sensors, as well as advanced combat systems for air, land, and sea sectors. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations. The company's Communication Systems segment provides broadband communications; tactical radios, software, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios, and system applications and equipment. Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic, and tactical systems; and space propulsion and power systems for national security, and space and exploration missions. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is based in Melbourne, Florida.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. 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 products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.