Howmet Aerospace (NYSE:HWM – Get Free Report) and Bombardier (OTCMKTS:BDRBF – Get Free Report) are both large-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Howmet Aerospace and Bombardier, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Howmet Aerospace | 0 | 3 | 16 | 2 | 2.95 |
| Bombardier | 1 | 5 | 4 | 0 | 2.30 |
Howmet Aerospace presently has a consensus price target of $314.84, indicating a potential upside of 36.01%. Bombardier has a consensus price target of $263.00, indicating a potential upside of 21.25%. Given Howmet Aerospace’s stronger consensus rating and higher probable upside, analysts plainly believe Howmet Aerospace is more favorable than Bombardier.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Howmet Aerospace | 20.52% | 33.91% | 15.11% |
| Bombardier | 9.74% | -75.69% | 7.46% |
Earnings & Valuation
This table compares Howmet Aerospace and Bombardier”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Howmet Aerospace | $9.12 billion | 10.16 | $1.51 billion | $4.64 | 49.89 |
| Bombardier | $9.55 billion | 2.25 | $928.00 million | $9.11 | 23.81 |
Howmet Aerospace has higher earnings, but lower revenue than Bombardier. Bombardier is trading at a lower price-to-earnings ratio than Howmet Aerospace, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
90.5% of Howmet Aerospace shares are owned by institutional investors. 0.9% of Howmet Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Howmet Aerospace beats Bombardier on 12 of the 14 factors compared between the two stocks.
About Howmet Aerospace
Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.
About Bombardier
Bombardier Inc. engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, service centers, smart services, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.
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