Contrasting Airbus (OTCMKTS:EADSF) and QinetiQ Group (OTCMKTS:QNTQY)

Airbus (OTCMKTS:EADSF – Get Rating) and QinetiQ Group (OTCMKTS:QNTQY – Get Rating) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Airbus pays an annual dividend of $0.75 per share and has a dividend yield of 0.6%. QinetiQ Group pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Airbus pays out 35.4% of its earnings in the form of a dividend. QinetiQ Group pays out -77.5% 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. QinetiQ Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for Airbus and QinetiQ Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	1	0	0	0	1.00
QinetiQ Group	0	1	1	0	2.50

Airbus currently has a consensus price target of $105.00, indicating a potential downside of 20.54%. Given Airbus’ higher probable upside, equities research analysts clearly believe Airbus is more favorable than QinetiQ Group.

Profitability

This table compares Airbus and QinetiQ Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbus	N/A	N/A	N/A
QinetiQ Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Airbus and QinetiQ Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	N/A	N/A	N/A	$2.12	62.33
QinetiQ Group	N/A	N/A	N/A	($0.26)	-75.52

QinetiQ Group is trading at a lower price-to-earnings ratio than Airbus, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

26.9% of Airbus shares are held by institutional investors. 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.

About Airbus

(Get Rating)

Airbus SE is a holding and management company, which engages in the design, manufacture, and marketing of aerospace products, services, and solutions. It operates through the following segments: Airbus, Airbus Helicopters, and Airbus Defense and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet passenger aircrafts, freighter aircraft, regional turboprop aircraft, and air components. The Airbus Helicopters segment is composed of civil and military helicopters and related services. The Airbus Defense and Space segment includes military aircraft, which supports combat, mission, transport and tanker aircraft, and associated services; space systems, which provides a range of civil and defense space systems for telecommunications, earth observations, navigation, science, and orbital systems; and connected intelligence, which refers to services around data processing from platforms, secure communication, and cyber security. The company was founded on December 29, 1998 and is headquartered in Blagnac, France.

About QinetiQ Group

(Get Rating)

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and infrastructure markets in the United States, Australia, Europe, and internationally. The company operates through EMEA Services and Global Products segments. It offers advanced materials and manufacturing products; artificial intelligence, analytics, and advanced computing technologies; cyber and electromagnetic technologies; human protection and performance systems; novel systems, and weapons and effects; maritime platform, and system design and assessment products; power sources, and energy storage and distribution products; robotics and autonomy services; secure communications and navigation systems; and sensing, processing, and data fusion systems. The company also provides testing and evaluation, training and simulation, and cyber and digital resilience services, as well as unmanned air, land, and surface targets. It serves defense, aviation and aerospace, energy and utility, financial services, government, law enforcement, marine, space, and telecommunications sectors. The company was founded in 2001 and is based in Farnborough, the United Kingdom.