CAE vs L3Harris Technologies Which Is Stronger?

CAE and L3Harris Technologies are two prominent players in the aerospace and defense industry, both offering engineering and technical solutions to customers worldwide. CAE is a Canadian company specializing in simulation technologies for aviation training, while L3Harris Technologies is a US-based company known for its defense and aerospace systems. Both companies have seen fluctuations in their stock prices in recent years due to changing market conditions and geopolitical factors. Investors interested in the aerospace and defense sector may find opportunities in both CAE and L3Harris Technologies stocks.

CAE or L3Harris Technologies?

When comparing CAE and L3Harris Technologies, 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 CAE and L3Harris Technologies.

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. CAE has a dividend yield of -%, while L3Harris Technologies has a dividend yield of 1.98%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CAE reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, L3Harris Technologies reports a 5-year dividend growth of 12.68% year and a payout ratio of 72.99%.

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 CAE P/E ratio at -31.80 and L3Harris Technologies's P/E ratio at 36.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CAE P/B ratio is 2.49 while L3Harris Technologies's P/B ratio is 2.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CAE has seen a 5-year revenue growth of 0.16%, while L3Harris Technologies's is 0.78%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CAE's ROE at -7.81% and L3Harris Technologies's ROE at 6.41%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $23.07 for CAE and $234.10 for L3Harris Technologies. Over the past year, CAE's prices ranged from $15.95 to $24.02, with a yearly change of 50.60%. L3Harris Technologies's prices fluctuated between $193.34 and $265.74, with a yearly change of 37.45%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.