Saab (SAABY) & Its Competitors Financial Analysis

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

Risk and Volatility

Saab has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Saab’s peers have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.

Profitability

This table compares Saab and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab	8.11%	16.27%	5.89%
Saab Competitors	-348.96%	-46.51%	-4.31%

Institutional & Insider Ownership

49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 11.8% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Saab and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	0	4	0	1	2.40
Saab Competitors	2157	8275	12795	581	2.50

As a group, “Aerospace & Defense” companies have a potential upside of 27.65%. Given Saab’s peers stronger consensus rating and higher probable upside, analysts clearly believe Saab has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Saab and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Saab	$8.42 billion	$645.29 million	43.45
Saab Competitors	$8.44 billion	$569.54 million	25.85

Saab’s peers have higher revenue, but lower earnings than Saab. Saab is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Saab pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Saab pays out 8.1% 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 39.1% of their earnings in the form of a dividend.

Summary

Saab peers beat Saab on 8 of the 15 factors compared.

Saab Company Profile

Saab AB is a Swedish defense and security company that develops and manufactures products and services for military, government, and commercial customers. Its offerings include combat aircraft, weapons, radar and surveillance systems, command-and-control technology, and training and simulation services. The company also develops naval systems, including submarines and surface-vessel solutions, through its Kockums business. Saab serves customers in Sweden and other markets around the world, working with governments and defense organizations as well as selected commercial clients.