Analyzing Saab (SAABY) and Its Rivals

Saab (OTCMKTS:SAABY) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Saab to related companies based on the strength of its dividends, valuation, risk, institutional ownership, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares Saab and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Saab	$8.42 billion	$645.29 million	43.45
Saab Competitors	$8.44 billion	$569.54 million	25.85

Saab’s rivals have higher revenue, but lower earnings than Saab. Saab is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 11.8% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Saab pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Saab pays out 8.1% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Saab and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	0	4	0	1	2.40
Saab Competitors	2157	8275	12795	581	2.50

As a group, “Aerospace & Defense” companies have a potential upside of 27.65%. Given Saab’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Saab has less favorable growth aspects than its rivals.

Profitability

This table compares Saab and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab	8.11%	16.27%	5.89%
Saab Competitors	-348.96%	-46.51%	-4.31%

Risk & Volatility

Saab has a beta of -0.17, suggesting that its share price is 117% less volatile than the S&P 500. Comparatively, Saab’s rivals have a beta of 1.31, suggesting that their average share price is 31% more volatile than the S&P 500.

Summary

Saab rivals beat Saab on 8 of the 15 factors compared.

About Saab

Saab AB is a Swedish defense and security company that develops and manufactures products and services for military, government, and commercial customers. Its offerings include combat aircraft, weapons, radar and surveillance systems, command-and-control technology, and training and simulation services. The company also develops naval systems, including submarines and surface-vessel solutions, through its Kockums business. Saab serves customers in Sweden and other markets around the world, working with governments and defense organizations as well as selected commercial clients.