B/E Aerospace (NASDAQ: BEAV) and Cubic (NYSE:CUB) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.
This is a breakdown of recent ratings and recommmendations for B/E Aerospace and Cubic, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares B/E Aerospace and Cubic’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cubic||$1.49 billion||1.20||-$11.20 million||($0.83)||-78.67|
B/E Aerospace has higher earnings, but lower revenue than Cubic. Cubic is trading at a lower price-to-earnings ratio than B/E Aerospace, indicating that it is currently the more affordable of the two stocks.
B/E Aerospace pays an annual dividend of $0.84 per share. Cubic pays an annual dividend of $0.27 per share and has a dividend yield of 0.4%. B/E Aerospace pays out 27.3% of its earnings in the form of a dividend. Cubic pays out -32.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cubic is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares B/E Aerospace and Cubic’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
92.0% of B/E Aerospace shares are held by institutional investors. Comparatively, 88.7% of Cubic shares are held by institutional investors. 0.5% of B/E Aerospace shares are held by insiders. Comparatively, 7.9% of Cubic shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
B/E Aerospace beats Cubic on 7 of the 13 factors compared between the two stocks.
B/E Aerospace Company Profile
B/E Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets. The Company sells its products and provides services directly to airlines and aerospace manufacturer. It operates through two segments. The Company manufactures aircraft seats, offering a selection of first class, business class, tourist class and regional aircraft seats. It manufactures and sells seats, which include the seat frame, cushions, armrests, tray table and a range of optional features, such as adjustable lumbar supports, electrical actuation systems, footrests, reading lights, head/neck supports and other comfort amenities. The business jet segment’s products include a range of business jet seating and sofa products, including electric fully berthing lie-flat seats, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables.
Cubic Company Profile
Cubic Corporation (Cubic) designs, integrates and operates systems, products and services that provide situational awareness for its customers in the transportation and defense industries. The Company operates in three business segments across the global transportation and defense markets, which include Cubic Transportation Systems (CTS), Cubic Global Defense (CGD) and Cubic Global Defense Services (CGD Services). The Company’s CTS segment is a systems integrator of payment and information technology and services for travel solutions. The Company’s CGD Systems is focused on two primary lines of business: training systems and secure communications (SC) products. The Company’s CGD Services segment is a provider of training, operations, intelligence, maintenance, technical and other support services to the United States government and its agencies and allied nations. It also provides cross-domain hardware solutions to address multi-level security challenges across common networks.
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