Airbus (OTCMKTS:EADSY – Get Free Report) and BWX Technologies (NYSE:BWXT – Get Free Report) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Valuation and Earnings
This table compares Airbus and BWX Technologies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Airbus | $83.05 billion | 2.16 | $5.91 billion | $2.19 | 26.00 |
| BWX Technologies | $3.20 billion | 4.36 | $328.95 million | $3.86 | 39.45 |
Dividends
Airbus pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. BWX Technologies pays an annual dividend of $1.08 per share and has a dividend yield of 0.7%. Airbus pays out 32.9% of its earnings in the form of a dividend. BWX Technologies pays out 28.0% 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. BWX Technologies has raised its dividend for 2 consecutive years.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Airbus and BWX Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Airbus | 0 | 6 | 7 | 0 | 2.54 |
| BWX Technologies | 0 | 5 | 8 | 2 | 2.80 |
BWX Technologies has a consensus target price of $224.20, indicating a potential upside of 47.25%. Given BWX Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe BWX Technologies is more favorable than Airbus.
Profitability
This table compares Airbus and BWX Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Airbus | 7.71% | 24.14% | 4.55% |
| BWX Technologies | 10.11% | 30.83% | 9.34% |
Insider and Institutional Ownership
0.3% of Airbus shares are owned by institutional investors. Comparatively, 94.4% of BWX Technologies shares are owned by institutional investors. 0.6% of BWX Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Airbus has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Summary
BWX Technologies beats Airbus on 14 of the 18 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 BWX Technologies
BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.
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