CAE (NYSE:CAE) and Ballistic Recovery (OTCMKTS:BRSI) Critical Review

Ballistic Recovery (OTCMKTS:BRSI) and CAE (NYSE:CAE) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares Ballistic Recovery and CAE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ballistic Recovery	N/A	N/A	N/A
CAE	8.70%	7.92%	3.51%

Institutional & Insider Ownership

67.4% of CAE shares are owned by institutional investors. 45.3% of Ballistic Recovery shares are owned by insiders. Comparatively, 18.3% of CAE shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Ballistic Recovery and CAE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ballistic Recovery	N/A	N/A	N/A	N/A	N/A
CAE	$4.73 billion	1.86	$291.29 million	$0.92	29.82

CAE has higher revenue and earnings than Ballistic Recovery.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Ballistic Recovery and CAE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ballistic Recovery	0	0	0	0	0.00
CAE	0	5	5	2	2.75

CAE has a consensus target price of $33.67, suggesting a potential upside of 22.74%. Given CAE’s stronger consensus rating and higher possible upside, analysts plainly believe CAE is more favorable than Ballistic Recovery.

Summary

CAE beats Ballistic Recovery on 9 of the 10 factors compared between the two stocks.

About Ballistic Recovery

Ballistic Recovery Systems Inc. develops and commercializes parachute systems in the United States. The company operates in three segments: Aviation, Defense, and Space. The Aviation segment designs, tests, and produces whole-aircraft emergency recovery parachute systems for the general aviation and recreational aircraft industries. The Defense segment designs, tests, and produces personnel parachute systems, precision guided aerial delivery systems, and cargo and whole-aircraft emergency recovery parachutes used in unmanned aerial vehicles and training aircrafts. The Space segment designs, tests, and produces entry, descent, and landing systems for various space applications, as well as manned and un-manned, planetary, and terrestrial space applications. The company also provides safety apparel. Ballistic Recovery Systems Inc. was founded in 1980 and is based in South Saint Paul, Minnesota.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.