Head-To-Head Analysis: Bombardier (OTCMKTS:BDRBF) & Safran (OTCMKTS:SAFRF)

Bombardier (OTCMKTS:BDRBF) and Safran (OTCMKTS:SAFRF) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Insider and Institutional Ownership

17.5% of Bombardier shares are held by institutional investors. Comparatively, 23.8% of Safran shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bombardier and Safran, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bombardier	0	0	2	0	3.00
Safran	0	0	0	0	0.00

Bombardier presently has a consensus target price of $129.00, suggesting a potential upside of 80.87%. Given Bombardier’s stronger consensus rating and higher probable upside, analysts plainly believe Bombardier is more favorable than Safran.

Profitability

This table compares Bombardier and Safran’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bombardier	N/A	N/A	N/A
Safran	N/A	N/A	N/A

Dividends

Bombardier pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Safran pays an annual dividend of $1.12 per share and has a dividend yield of 0.5%. Bombardier pays out 37.6% of its earnings in the form of a dividend. Safran pays out 29.8% 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. Safran is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Bombardier and Safran”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bombardier	N/A	N/A	N/A	$0.25	289.65
Safran	N/A	N/A	N/A	$3.76	65.06

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

About Bombardier

Bombardier Inc. engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, service centers, smart services, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.

About Safran

Safran SA, together with its subsidiaries, engages in the aerospace and defense businesses worldwide. The company operates through three segments: Aerospace Propulsion; Aircraft Equipment, Defense and Aerosystems; and Aircraft Interiors. The Aerospace Propulsion segment designs, develops, produces, and markets propulsion and mechanical power transmission systems for commercial aircraft, military transport, training and combat aircraft, civil and military helicopters, satellites, and drones; and offers maintenance, repair, and overhaul (MRO) services, as well as sells spare parts. The Aircraft Equipment, Defense and Aerosystems segment provides landing gears and brakes; nacelles and reversers; avionics, such as flight controls and onboard information systems; security systems, including evacuation slides and oxygen masks; onboard computers and fuel systems; electrical power management systems and related engineering services; and optronic equipment and sights, navigation equipment and sensors, infantry, and drones, as well as offers MRO services and sells spare parts. The Aircraft Interiors segment designs, develops, manufactures, and markets aircraft seats for passengers and crew; cabin equipment, overhead bins, class dividers, passenger service units, cabin interior solutions, chilling systems, galleys, electrical inserts, and trolleys and cargo equipment; and cabin and passenger solutions, such as water distribution equipment, lavatories, air systems, and in-flight entertainment and connectivity systems. Its products and services are used in civil and military aircraft, and helicopters. Safran SA was founded in 1896 and is based in Paris, France.