Contrasting GE Aerospace (GE) and Its Competitors

GE Aerospace (NYSE:GE) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare GE Aerospace to related companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Profitability

This table compares GE Aerospace and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Aerospace	17.31%	44.43%	6.30%
GE Aerospace Competitors	-286.73%	-47.03%	-4.24%

Earnings & Valuation

This table compares GE Aerospace and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GE Aerospace	$45.85 billion	$8.70 billion	37.32
GE Aerospace Competitors	$8.33 billion	$569.54 million	23.70

GE Aerospace has higher revenue and earnings than its competitors. GE Aerospace is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

GE Aerospace pays an annual dividend of $1.88 per share and has a dividend yield of 0.6%. GE Aerospace pays out 21.7% 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 38.5% of their earnings in the form of a dividend. GE Aerospace has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

74.8% of GE Aerospace shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.2% of GE Aerospace shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

GE Aerospace has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, GE Aerospace’s competitors have a beta of 1.31, meaning that their average share price is 31% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for GE Aerospace and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Aerospace	1	3	16	0	2.75
GE Aerospace Competitors	2156	8256	12756	579	2.50

GE Aerospace currently has a consensus price target of $373.45, indicating a potential upside of 15.43%. As a group, “Aerospace & Defense” companies have a potential upside of 32.89%. Given GE Aerospace’s competitors higher possible upside, analysts plainly believe GE Aerospace has less favorable growth aspects than its competitors.

Summary

GE Aerospace beats its competitors on 11 of the 15 factors compared.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.