Contrasting Airbus (OTCMKTS:EADSY) & Vertical Aerospace (NYSE:EVTL)

Airbus (OTCMKTS:EADSY) and Vertical Aerospace (NYSE:EVTL) are both aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Profitability

This table compares Airbus and Vertical Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbus	6.97%	23.52%	3.91%
Vertical Aerospace	N/A	N/A	-640.47%

Volatility and Risk

Airbus has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Vertical Aerospace has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Insider and Institutional Ownership

0.3% of Airbus shares are held by institutional investors. Comparatively, 81.2% of Vertical Aerospace shares are held by institutional investors. 74.8% of Vertical Aerospace shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Airbus and Vertical Aerospace”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	$74.92 billion	2.59	$4.58 billion	$1.76	34.79
Vertical Aerospace	N/A	N/A	-$998.35 million	($50.52)	-0.09

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Airbus and Vertical Aerospace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	0	4	5	0	2.56
Vertical Aerospace	2	1	6	0	2.44

Vertical Aerospace has a consensus price target of $10.43, indicating a potential upside of 132.52%. Given Vertical Aerospace’s higher possible upside, analysts plainly believe Vertical Aerospace is more favorable than Airbus.

Summary

Airbus beats Vertical Aerospace on 9 of the 13 factors compared between the two stocks.

About Airbus

Airbus SE, together with its subsidiaries, engages in the design, manufacture, and delivery of aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet passenger aircraft, freighter aircraft, regional turboprop aircraft, and aircraft components, as well as provides aircraft conversion and related services. The Airbus Helicopters segment develops, manufactures, markets, and sells civil and military helicopters; and provides helicopter-related services. The Airbus Defence and Space segment designs, develops, delivers, and supports military air systems and related services. This segment also offers civil and defence space systems for telecommunications, earth observations, navigation, and science and orbital systems; missile and space launcher systems; and services around data processing from platforms, secure communication, and cyber security. The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was incorporated in 1998 and is headquartered in Leiden, the Netherlands.

About Vertical Aerospace

Vertical Aerospace Ltd., an aerospace and technology company, engages in designing, manufacturing, and selling zero operating emission electric vertical takeoff and landing (eVTOL) aircraft for use in the advanced air mobility in the United Kingdom. It offers VX4, an eVTOL aircraft. Vertical Aerospace Ltd. was founded in 2016 and is headquartered in Bristol, the United Kingdom.