Boeing vs Embraer Which Performs Better?

Boeing and Embraer are two prominent companies in the aerospace industry, each with a unique market position and strengths. Boeing, a well-established American multinational corporation, is known for its commercial and defense aircrafts, while Embraer, a Brazilian aerospace company, is renowned for its regional jets. Investors often compare and analyze the stocks of these two companies to make informed decisions about their investments. Understanding the performance and prospects of Boeing versus Embraer stocks is crucial for navigating the aerospace sector.

Boeing or Embraer?

When comparing Boeing and Embraer, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Boeing and Embraer.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Boeing has a dividend yield of -%, while Embraer has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Boeing reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Embraer reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.76%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Boeing P/E ratio at -11.94 and Embraer's P/E ratio at 13.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Boeing P/B ratio is -4.04 while Embraer's P/B ratio is 2.22.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Boeing has seen a 5-year revenue growth of -0.26%, while Embraer's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Boeing's ROE at 42.10% and Embraer's ROE at 17.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $153.41 for Boeing and $37.01 for Embraer. Over the past year, Boeing's prices ranged from $137.03 to $267.54, with a yearly change of 95.24%. Embraer's prices fluctuated between $16.88 and $40.34, with a yearly change of 138.98%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.