E1 vs Embraer Which Is More Attractive?

E1 and Embraer are two prominent companies in the aerospace industry, with a focus on manufacturing commercial and military aircraft. E1, based in Europe, has a long-standing reputation for quality and innovation in its aircraft designs. On the other hand, Embraer, headquartered in Brazil, is known for its regional jets and executive jets. Both companies have seen fluctuations in their stock prices due to global economic conditions and competition in the aerospace market. Let's explore how E1 and Embraer stocks have performed in recent years.

E1 or Embraer?

When comparing E1 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 E1 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. E1 has a dividend yield of 6.94%, while Embraer has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. E1 reports a 5-year dividend growth of 20.82% year and a payout ratio of 23.36%. 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 E1 P/E ratio at 3.18 and Embraer's P/E ratio at 14.07. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. E1 P/B ratio is 0.24 while Embraer's P/B ratio is 2.23.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, E1 has seen a 5-year revenue growth of 0.97%, while Embraer's is 0.03%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with E1's ROE at 7.84% and Embraer's ROE at 17.20%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₩70100.00 for E1 and $37.33 for Embraer. Over the past year, E1's prices ranged from ₩56500.00 to ₩84600.00, with a yearly change of 49.73%. 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.