Embraer vs E1 Which Is More Attractive?

Embraer and E1 stocks have become two prominent investment options in the aerospace industry. Embraer, a Brazilian aircraft manufacturer, has a solid reputation for producing commercial and military aircraft. On the other hand, E1 is a smaller company known for its innovative technology and advancements in the aviation sector. Investors are keeping a close eye on both stocks as they navigate the ever-changing landscape of the aerospace industry and seek promising opportunities for growth and profitability.

Embraer or E1?

When comparing Embraer and E1, 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 E1.

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 E1 has a dividend yield of 6.95%. 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, E1 reports a 5-year dividend growth of 20.82% year and a payout ratio of 23.36%.

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 13.85 and E1's P/E ratio at 3.20. 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 2.20 while E1's P/B ratio is 0.24.

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 E1's is 0.97%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Embraer's ROE at 17.20% and E1's ROE at 7.84%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.40 for Embraer and ₩70000.00 for E1. Over the past year, Embraer's prices ranged from $16.88 to $40.34, with a yearly change of 138.98%. E1's prices fluctuated between ₩56500.00 and ₩84600.00, with a yearly change of 49.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.