Financial Review: Airbus (OTCMKTS:EADSY) and Ducommun (NYSE:DCO)

Ducommun (NYSE:DCO) and Airbus (OTCMKTS:EADSY) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Volatility & Risk

Ducommun has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Airbus has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ducommun and Airbus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ducommun	0	2	4	1	2.86
Airbus	0	6	7	0	2.54

Ducommun presently has a consensus target price of $192.60, suggesting a potential upside of 9.79%. Given Ducommun’s stronger consensus rating and higher possible upside, analysts clearly believe Ducommun is more favorable than Airbus.

Earnings and Valuation

This table compares Ducommun and Airbus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ducommun	$824.73 million	3.21	-$37.35 million	($1.87)	-93.81
Airbus	$83.05 billion	2.24	$5.91 billion	$2.19	26.87

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

Profitability

This table compares Ducommun and Airbus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ducommun	-3.10%	9.20%	5.07%
Airbus	7.71%	24.14%	4.55%

Insider and Institutional Ownership

92.2% of Ducommun shares are held by institutional investors. Comparatively, 0.3% of Airbus shares are held by institutional investors. 5.0% of Ducommun shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Airbus beats Ducommun on 8 of the 15 factors compared between the two stocks.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.

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.