Airbus (OTCMKTS:EADSY) & ASSA ABLOY AB (publ) (OTCMKTS:ASAZY) Financial Review

ASSA ABLOY AB (publ) (OTCMKTS:ASAZY) and Airbus (OTCMKTS:EADSY) are both large-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Institutional & Insider Ownership

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for ASSA ABLOY AB (publ) and Airbus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASSA ABLOY AB (publ)	1	0	0	0	1.00
Airbus	0	2	2	0	2.50

Profitability

This table compares ASSA ABLOY AB (publ) and Airbus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASSA ABLOY AB (publ)	10.02%	15.60%	7.32%
Airbus	4.64%	18.64%	2.56%

Dividends

ASSA ABLOY AB (publ) pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Airbus pays an annual dividend of $0.35 per share and has a dividend yield of 1.0%. ASSA ABLOY AB (publ) pays out 22.6% of its earnings in the form of a dividend. Airbus pays out 26.1% 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.

Earnings and Valuation

This table compares ASSA ABLOY AB (publ) and Airbus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASSA ABLOY AB (publ)	$13.27 billion	2.72	$1.29 billion	$0.62	26.18
Airbus	$70.83 billion	1.57	$4.10 billion	$1.34	26.10

Airbus has higher revenue and earnings than ASSA ABLOY AB (publ). Airbus is trading at a lower price-to-earnings ratio than ASSA ABLOY AB (publ), indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

ASSA ABLOY AB (publ) has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Airbus has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Summary

Airbus beats ASSA ABLOY AB (publ) on 9 of the 14 factors compared between the two stocks.

About ASSA ABLOY AB (publ)

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.

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.