Contrasting CAE (CAE) and Its Rivals

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

Analyst Ratings

This is a breakdown of current recommendations for CAE and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAE	1	3	7	0	2.55
CAE Competitors	2164	8281	12810	581	2.50

CAE presently has a consensus target price of $33.33, indicating a potential upside of 18.41%. As a group, “Aerospace & Defense” companies have a potential upside of 29.34%. Given CAE’s competitors higher possible upside, analysts plainly believe CAE has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares CAE and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CAE	$4.99 billion	$226.62 million	43.31
CAE Competitors	$8.35 billion	$569.54 million	21.51

CAE’s competitors have higher revenue and earnings than CAE. CAE 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAE	6.36%	7.45%	3.51%
CAE Competitors	-347.37%	-49.14%	-4.39%

Volatility and Risk

CAE has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, CAE’s competitors have a beta of 1.31, indicating that their average stock price is 31% more volatile than the S&P 500.

Insider and Institutional Ownership

67.4% of CAE shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 18.3% of CAE shares are held by company insiders. Comparatively, 11.8% 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.

Dividends

CAE pays an annual dividend of $0.33 per share and has a dividend yield of 1.2%. CAE pays out 50.6% 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 38.4% of their earnings in the form of a dividend.

Summary

CAE beats its competitors on 9 of the 15 factors compared.

About CAE

CAE Inc. is a Canadian technology company that develops simulation and training solutions for the civil aviation and defense markets. Founded in 1947 and headquartered in Montreal, the company serves customers around the world. In civil aviation, CAE provides flight simulators, training devices, and pilot and crew training services to airlines, business aviation operators, aircraft manufacturers, and other aviation organizations. Its offerings support training across a range of aircraft types and operational needs.