Elbit Systems (NASDAQ:ESLT – Get Free Report) and Bombardier (OTCMKTS:BDRBF – Get Free Report) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
Institutional and Insider Ownership
17.9% of Elbit Systems shares are held by institutional investors. 0.8% of Elbit Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Elbit Systems and Bombardier”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Elbit Systems | $7.94 billion | 4.37 | $534.34 million | $13.27 | 58.76 |
| Bombardier | $9.55 billion | 2.44 | $928.00 million | $9.11 | 25.77 |
Bombardier has higher revenue and earnings than Elbit Systems. Bombardier is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Elbit Systems and Bombardier, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Elbit Systems | 0 | 5 | 0 | 0 | 2.00 |
| Bombardier | 1 | 3 | 5 | 1 | 2.60 |
Elbit Systems currently has a consensus target price of $841.67, suggesting a potential upside of 7.95%. Bombardier has a consensus target price of $263.00, suggesting a potential upside of 12.01%. Given Bombardier’s stronger consensus rating and higher possible upside, analysts plainly believe Bombardier is more favorable than Elbit Systems.
Profitability
This table compares Elbit Systems and Bombardier’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Elbit Systems | 7.44% | 16.66% | 5.39% |
| Bombardier | 9.74% | -75.69% | 7.46% |
Summary
Bombardier beats Elbit Systems on 8 of the 14 factors compared between the two stocks.
About Elbit Systems
Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.
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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