Embraer vs Boeing Which Should You Buy?

Embraer and Boeing are two major players in the aerospace industry, both of which offer stocks investors may consider adding to their portfolios. Embraer, a Brazilian aerospace company, specializes in manufacturing commercial, military, and executive aircraft. Boeing, an American multinational corporation, is known for producing commercial jetliners, military aircraft, and defense systems. Investors may want to compare the performance and potential growth of these stocks to make informed decisions about their investments in the aerospace sector.

Embraer or Boeing?

When comparing Embraer and Boeing, 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 Embraer and Boeing.

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. Embraer has a dividend yield of -%, while Boeing has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Embraer reports a 5-year dividend growth of 0.00% year and a payout ratio of 2.76%. On the other hand, Boeing reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Embraer P/E ratio at 13.48 and Boeing's P/E ratio at -13.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Embraer P/B ratio is 2.14 while Boeing's P/B ratio is -4.46.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $36.35 for Embraer and $166.33 for Boeing. Over the past year, Embraer's prices ranged from $16.88 to $40.34, with a yearly change of 138.98%. Boeing's prices fluctuated between $137.03 and $267.54, with a yearly change of 95.24%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.