Reviewing CAE (NYSE:CAE) & Exail Technologies (OTCMKTS:GGRGF)

Exail Technologies (OTCMKTS:GGRGF) and CAE (NYSE:CAE) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, analyst recommendations and earnings.

Institutional and Insider Ownership

6.8% of Exail Technologies shares are held by institutional investors. Comparatively, 67.4% of CAE shares are held by institutional investors. 18.3% of CAE shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Exail Technologies and CAE”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exail Technologies	N/A	N/A	N/A	$0.52	34.73
CAE	$4.34 billion	1.41	-$225.35 million	($0.72)	-26.65

Exail Technologies has higher earnings, but lower revenue than CAE. CAE is trading at a lower price-to-earnings ratio than Exail Technologies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Exail Technologies and CAE, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exail Technologies	0	0	0	0	N/A
CAE	1	6	1	0	2.00

CAE has a consensus target price of $28.00, suggesting a potential upside of 45.91%. Given CAE’s higher probable upside, analysts clearly believe CAE is more favorable than Exail Technologies.

Profitability

This table compares Exail Technologies and CAE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exail Technologies	N/A	N/A	N/A
CAE	-7.38%	5.96%	2.64%

Dividends

Exail Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. CAE pays an annual dividend of $0.33 per share and has a dividend yield of 1.7%. Exail Technologies pays out 61.7% of its earnings in the form of a dividend. CAE pays out -45.7% 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.

Summary

CAE beats Exail Technologies on 8 of the 12 factors compared between the two stocks.

About Exail Technologies

Exail Technologies provides robotics, maritime, navigation, aerospace, and photonics technologies solutions in France and internationally. It offers components, products, and systems for naval defense, maritime, aerospace, photonics, land defense, and other industries. The company was founded in 1988 and is headquartered in Paris, France.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.