Analyzing Elbit Systems (NASDAQ:ESLT) and FTAI Aviation (NASDAQ:FTAI)

FTAI Aviation (NASDAQ:FTAI) and Elbit Systems (NASDAQ:ESLT) are both large-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares FTAI Aviation and Elbit Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
FTAI Aviation	15.94%	139.59%	11.26%
Elbit Systems	7.44%	16.66%	5.39%

Risk & Volatility

FTAI Aviation has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Elbit Systems has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Dividends

FTAI Aviation pays an annual dividend of $2.00 per share and has a dividend yield of 1.0%. Elbit Systems pays an annual dividend of $3.33 per share and has a dividend yield of 0.5%. FTAI Aviation pays out 43.5% of its earnings in the form of a dividend. Elbit Systems pays out 25.1% 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. Elbit Systems has increased its dividend for 1 consecutive years.

Institutional & Insider Ownership

89.0% of FTAI Aviation shares are owned by institutional investors. Comparatively, 17.9% of Elbit Systems shares are owned by institutional investors. 1.4% of FTAI Aviation shares are owned by insiders. Comparatively, 0.8% of Elbit Systems shares are owned by insiders. 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.

Earnings and Valuation

This table compares FTAI Aviation and Elbit Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FTAI Aviation	$2.51 billion	8.04	$501.06 million	$4.60	42.67
Elbit Systems	$7.94 billion	3.94	$534.34 million	$13.27	53.00

Elbit Systems has higher revenue and earnings than FTAI Aviation. FTAI Aviation is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for FTAI Aviation and Elbit Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FTAI Aviation	0	2	9	0	2.82
Elbit Systems	0	5	0	0	2.00

FTAI Aviation presently has a consensus price target of $320.11, suggesting a potential upside of 63.09%. Elbit Systems has a consensus price target of $870.00, suggesting a potential upside of 23.71%. Given FTAI Aviation’s stronger consensus rating and higher probable upside, equities research analysts clearly believe FTAI Aviation is more favorable than Elbit Systems.

Summary

FTAI Aviation beats Elbit Systems on 11 of the 17 factors compared between the two stocks.

About FTAI Aviation

FTAI Aviation Ltd. owns and acquires aviation and offshore energy equipment for the transportation of goods and people worldwide. It operates through two segments, Aviation Leasing and Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to customers. As of December 31, 2023, this segment owned and managed 363 aviation assets consisting of 96 commercial aircraft and 267 engines, including eight aircraft and seventeen engines that were located in Russia. The Aerospace Products segment develops, manufactures, repairs, and sells aircraft engines and aftermarket components for aircraft engines. The company was founded in 2011 and is headquartered in New York, New York.

About Elbit Systems

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.