Airbus (OTCMKTS:EADSY – Get Free Report) and Huntington Ingalls Industries (NYSE:HII – Get Free Report) are both large-cap aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Valuation & Earnings
This table compares Airbus and Huntington Ingalls Industries”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airbus | $83.05 billion | 1.95 | $5.91 billion | $1.84 | 27.92 |
| Huntington Ingalls Industries | $12.48 billion | 0.92 | $605.00 million | $15.37 | 19.06 |
Profitability
This table compares Airbus and Huntington Ingalls Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airbus | 6.92% | 20.90% | 3.88% |
| Huntington Ingalls Industries | 4.71% | 12.05% | 4.87% |
Dividends
Airbus pays an annual dividend of $0.72 per share and has a dividend yield of 1.4%. Huntington Ingalls Industries pays an annual dividend of $5.52 per share and has a dividend yield of 1.9%. Airbus pays out 39.1% of its earnings in the form of a dividend. Huntington Ingalls Industries pays out 35.9% 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. Huntington Ingalls Industries has increased its dividend for 13 consecutive years. Huntington Ingalls Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider & Institutional Ownership
0.3% of Airbus shares are owned by institutional investors. Comparatively, 90.5% of Huntington Ingalls Industries shares are owned by institutional investors. 0.8% of Huntington Ingalls Industries shares are owned 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.
Analyst Ratings
This is a summary of recent recommendations for Airbus and Huntington Ingalls Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airbus | 0 | 7 | 5 | 0 | 2.42 |
| Huntington Ingalls Industries | 0 | 7 | 4 | 0 | 2.36 |
Huntington Ingalls Industries has a consensus price target of $388.50, suggesting a potential upside of 32.61%. Given Huntington Ingalls Industries’ higher probable upside, analysts plainly believe Huntington Ingalls Industries is more favorable than Airbus.
Risk and Volatility
Airbus has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Huntington Ingalls Industries has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.
Summary
Airbus beats Huntington Ingalls Industries on 9 of the 17 factors compared between the two stocks.
About Airbus
Airbus SE, together with its subsidiaries, engages in the design, manufacture, and delivery of aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet passenger aircraft, freighter aircraft, regional turboprop aircraft, and aircraft components, as well as provides aircraft conversion and related services. The Airbus Helicopters segment develops, manufactures, markets, and sells civil and military helicopters; and provides helicopter-related services. The Airbus Defence and Space segment designs, develops, delivers, and supports military air systems and related services. This segment also offers civil and defence space systems for telecommunications, earth observations, navigation, and science and orbital systems; missile and space launcher systems; and services around data processing from platforms, secure communication, and cyber security. The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was incorporated in 1998 and is headquartered in Leiden, the Netherlands.
About Huntington Ingalls Industries
Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.
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