Comparing Boeing (BA) and BBA Aviation (BBAVY)

Boeing (NYSE: BA) and BBA Aviation (OTCMKTS:BBAVY) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

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This is a breakdown of current recommendations and price targets for Boeing and BBA Aviation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Boeing 0 10 15 0 2.60
BBA Aviation 0 1 1 0 2.50

Boeing presently has a consensus target price of $364.74, indicating a potential upside of 8.60%. Given Boeing’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Boeing is more favorable than BBA Aviation.

Dividends

Boeing pays an annual dividend of $6.84 per share and has a dividend yield of 2.0%. BBA Aviation pays an annual dividend of $0.86 per share and has a dividend yield of 3.8%. Boeing pays out 56.8% of its earnings in the form of a dividend. BBA Aviation pays out 89.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Boeing has increased its dividend for 6 consecutive years.

Insider and Institutional Ownership

70.8% of Boeing shares are held by institutional investors. Comparatively, 0.1% of BBA Aviation shares are held by institutional investors. 0.2% of Boeing shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Boeing and BBA Aviation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Boeing $93.39 billion 2.12 $8.20 billion $12.04 27.90
BBA Aviation $2.37 billion 1.95 $119.40 million $0.96 23.36

Boeing has higher revenue and earnings than BBA Aviation. BBA Aviation is trading at a lower price-to-earnings ratio than Boeing, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Boeing has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, BBA Aviation has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Profitability

This table compares Boeing and BBA Aviation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Boeing 8.78% -11,050.62% 8.10%
BBA Aviation N/A N/A N/A

Summary

Boeing beats BBA Aviation on 14 of the 17 factors compared between the two stocks.

Boeing Company Profile

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. The Commercial Airplanes segment provides commercial jet aircraft for passenger and cargo requirements, and fleet support services, principally to the commercial airline industry. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, data analytics and information-based services, and technical advice to commercial and government customers. This segment also provides supply chain management and engineering support services; maintenance, modification, and upgrades for aircraft; and training systems and government services, that include pilot and maintenance training. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating and finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was founded in 1916 and is headquartered in Chicago, Illinois.

BBA Aviation Company Profile

BBA Aviation plc provides aviation support and aftermarket services to the business and general aviation (B&GA) markets in the United Kingdom, Mainland Europe, North America, and internationally. It operates through Flight Support and Aftermarket Services segments. The company operates Signature Flight Support, a fixed base operation network that offers service support for B&GA travel, including fueling, ground handling, passenger and pilot services, and amenities; hangarage for resting and at home aircraft; technical support, line maintenance, and aircraft on ground services through Signature TECHNICAir; and aircraft management and charter services through Gama Aviation Signature Aircraft Management partnership to the passengers, operators, and pilots of the B&GA fleet. It also provides a portfolio of licensed parts and MRO services, including equipment, components, and spare parts for maturing and legacy platforms; transforms non-core products from original equipment manufacturers (OEMs); and provides maintenance, repair, and overhaul services for commercial, B&GA, and military fixed wing and rotorcraft platforms to OEMs and their customers. In addition, the company offers engine repair and overhaul services, such as full engine overhaul, scheduled engine repair, on-wing in-field repair, aircraft-on-ground support, engine accessory part, and component repair services to private and commercial operators of aircrafts in the B&GA, regional airline, and rotorcraft fleets. BBA Aviation plc was founded in 1879 and is headquartered in London, the United Kingdom.

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