Hexcel (NYSE:HXL – Get Free Report) and Boeing (NYSE:BA – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.
Institutional & Insider Ownership
95.5% of Hexcel shares are owned by institutional investors. Comparatively, 64.8% of Boeing shares are owned by institutional investors. 1.8% of Hexcel shares are owned by insiders. Comparatively, 0.1% of Boeing shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Hexcel and Boeing”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hexcel | $1.89 billion | 3.18 | $109.40 million | $2.23 | 35.64 |
| Boeing | $89.46 billion | 1.51 | $2.23 billion | $9.19 | 18.51 |
Boeing has higher revenue and earnings than Hexcel. Boeing is trading at a lower price-to-earnings ratio than Hexcel, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Hexcel and Boeing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hexcel | 8.50% | 13.57% | 6.41% |
| Boeing | 7.98% | -42.40% | -1.53% |
Volatility and Risk
Hexcel has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Boeing has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Hexcel and Boeing, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hexcel | 0 | 9 | 4 | 1 | 2.43 |
| Boeing | 3 | 8 | 21 | 1 | 2.61 |
Hexcel currently has a consensus price target of $101.67, suggesting a potential upside of 27.93%. Boeing has a consensus price target of $247.88, suggesting a potential upside of 45.71%. Given Boeing’s stronger consensus rating and higher probable upside, analysts clearly believe Boeing is more favorable than Hexcel.
About Hexcel
Hexcel Corporation develops and manufactures advanced composite materials used in aerospace, defense and industrial applications. Its products help customers create lightweight, durable components for aircraft and other structures. The company’s offerings include carbon fiber, specialty reinforcements, prepregs, honeycomb materials, engineered core products and composite structures. These materials are used in commercial and military aircraft, space and defense systems, and a range of industrial applications.
About Boeing
The Boeing Company is an aerospace manufacturer that designs, builds and supports commercial airplanes, defense products and space systems. Its commercial aircraft include the 737, 767, 777 and 787 families, which serve passenger and cargo operators around the world. Boeing’s defense, space and security business supplies military aircraft, helicopters, weapons, satellites and related systems, as well as services for government customers. Its Boeing Global Services business provides support such as maintenance, parts, training and logistics for commercial and government customers.
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