GE Aerospace (GE) versus Its Peers Critical Review

GE Aerospace (NYSE:GE) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare GE Aerospace to similar businesses based on the strength of its dividends, institutional ownership, analyst recommendations, valuation, risk, earnings and profitability.

Dividends

GE Aerospace pays an annual dividend of $1.88 per share and has a dividend yield of 0.6%. GE Aerospace pays out 21.7% 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 39.2% of their earnings in the form of a dividend. GE Aerospace has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

74.8% of GE Aerospace shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.2% of GE Aerospace shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company 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 & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
GE Aerospace	$45.85 billion	$8.70 billion	38.05
GE Aerospace Competitors	$8.43 billion	$569.54 million	24.95

GE Aerospace has higher revenue and earnings than its rivals. GE Aerospace 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.

Volatility & Risk

GE Aerospace has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, GE Aerospace’s rivals have a beta of 1.32, suggesting that their average share price is 32% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GE Aerospace	17.31%	44.43%	6.30%
GE Aerospace Competitors	-278.26%	-46.47%	-4.05%

Analyst Recommendations

This is a summary of current recommendations and price targets for GE Aerospace and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Aerospace	1	3	16	0	2.75
GE Aerospace Competitors	2152	8246	12738	579	2.50

GE Aerospace presently has a consensus target price of $373.45, indicating a potential upside of 13.20%. As a group, “Aerospace & Defense” companies have a potential upside of 28.94%. Given GE Aerospace’s rivals higher possible upside, analysts plainly believe GE Aerospace has less favorable growth aspects than its rivals.

Summary

GE Aerospace beats its rivals on 11 of the 15 factors compared.

GE Aerospace Company Profile

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.