CAE (CAE) and The Competition Critical Survey

CAE (NYSE:CAE – Get Free Report) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its peers? We will compare CAE to similar companies based on the strength of its dividends, profitability, earnings, institutional ownership, risk, valuation and analyst recommendations.

Dividends

CAE pays an annual dividend of $0.33 per share and has a dividend yield of 1.2%. CAE pays out 50.6% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.4% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings for CAE and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAE 1 3 7 0 2.55
CAE Competitors 2164 8281 12810 581 2.50

CAE presently has a consensus price target of $33.33, suggesting a potential upside of 18.41%. As a group, “Aerospace & Defense” companies have a potential upside of 29.34%. Given CAE’s peers higher probable upside, analysts plainly believe CAE has less favorable growth aspects than its peers.

Profitability

This table compares CAE and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAE 6.36% 7.45% 3.51%
CAE Competitors -347.37% -49.14% -4.39%

Risk & Volatility

CAE has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, CAE’s peers have a beta of 1.31, indicating that their average stock price is 31% more volatile than the S&P 500.

Earnings & Valuation

This table compares CAE and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CAE $4.99 billion $226.62 million 43.31
CAE Competitors $8.35 billion $569.54 million 21.51

CAE’s peers have higher revenue and earnings than CAE. CAE is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

67.4% of CAE shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 18.3% of CAE shares are held by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are held 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.

Summary

CAE beats its peers on 9 of the 15 factors compared.

About CAE

(Get Free Report)

CAE Inc. is a Canadian technology company that develops simulation and training solutions for the civil aviation and defense markets. Founded in 1947 and headquartered in Montreal, the company serves customers around the world. In civil aviation, CAE provides flight simulators, training devices, and pilot and crew training services to airlines, business aviation operators, aircraft manufacturers, and other aviation organizations. Its offerings support training across a range of aircraft types and operational needs.

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