Critical Review: BAE Systems (OTCMKTS:BAESY) and Esprit (OTCMKTS:ESPGY)

BAE Systems (OTCMKTS:BAESY) and Esprit (OTCMKTS:ESPGY) are both aerospace companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for BAE Systems and Esprit, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BAE Systems	1	1	1	0	2.00
Esprit	0	0	0	0	0.00

Profitability

This table compares BAE Systems and Esprit’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BAE Systems	N/A	N/A	N/A
Esprit	N/A	N/A	N/A

Volatility & Risk

BAE Systems has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Esprit has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Earnings & Valuation

This table compares BAE Systems and Esprit”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BAE Systems	$24.98 billion	2.06	$2.31 billion	N/A	N/A
Esprit	$755.12 million	0.06	-$298.75 million	N/A	N/A

BAE Systems has higher revenue and earnings than Esprit.

Insider and Institutional Ownership

0.2% of BAE Systems shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

BAE Systems beats Esprit on 6 of the 7 factors compared between the two stocks.

About BAE Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.

About Esprit

Esprit Holdings Limited, an investment holding company, engages in retail and wholesale distribution, and licensing of fashion and non-apparel products. It operates through Europe; Asia; E-shop; and Corporate Services, Sourcing, Licensing and Others segments. The company offers apparel and accessories under the ESPRIT brand name through retail stores and e-commerce platforms. It is also involved in the sourcing, purchasing, distributing, and sale of merchandise; provision of financial and treasury services, as well as logistic services comprising customs dealing and quality control; design and image directions; and conceptualization and development of global uniform image businesses. Esprit Holdings Limited was founded in 1968 and is headquartered in North Point, Hong Kong.