Reviewing Magellan Aerospace (OTCMKTS:MALJF) & GE Aerospace (NYSE:GE)

Magellan Aerospace (OTCMKTS:MALJF) and GE Aerospace (NYSE:GE) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, dividends, earnings, valuation, profitability, risk and institutional ownership.

Valuation and Earnings

This table compares Magellan Aerospace and GE Aerospace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magellan Aerospace	N/A	N/A	N/A	$0.95	10.60
GE Aerospace	$39.68 billion	5.61	$6.56 billion	$6.43	32.48

GE Aerospace has higher revenue and earnings than Magellan Aerospace. Magellan Aerospace is trading at a lower price-to-earnings ratio than GE Aerospace, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

3.9% of Magellan Aerospace shares are owned by institutional investors. Comparatively, 74.8% of GE Aerospace shares are owned by institutional investors. 0.2% of GE Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Magellan Aerospace pays an annual dividend of $0.15 per share and has a dividend yield of 1.5%. GE Aerospace pays an annual dividend of $1.44 per share and has a dividend yield of 0.7%. Magellan Aerospace pays out 15.7% of its earnings in the form of a dividend. GE Aerospace pays out 22.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Magellan Aerospace is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Magellan Aerospace and GE Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magellan Aerospace	N/A	N/A	N/A
GE Aerospace	14.31%	22.19%	3.66%

Analyst Ratings

This is a breakdown of current ratings for Magellan Aerospace and GE Aerospace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magellan Aerospace	0	0	0	0	0.00
GE Aerospace	0	0	12	0	3.00

GE Aerospace has a consensus target price of $216.92, indicating a potential upside of 3.86%. Given GE Aerospace’s stronger consensus rating and higher probable upside, analysts clearly believe GE Aerospace is more favorable than Magellan Aerospace.

Summary

GE Aerospace beats Magellan Aerospace on 11 of the 13 factors compared between the two stocks.

About Magellan Aerospace

Magellan Aerospace Corporation, through its subsidiaries, engineers and manufactures aeroengine and aerostructure components for aerospace markets in Canada, the United States, and Europe. The company offers aero engine products, such as laser welded honeycomb and filament wound tubes, frames, compressor components, bypass ducts, hot section components, and aeroengine and helicopter drive shafts, as well as other flight safety critical machined components, including discs, seals, and spacers; and aerostructures comprising landing gear systems, wing ribs, spars and skins, bulkheads and fuselage components, tailcone assemblies, composite wing and fairing structures, horizontal and vertical stabilizers, plug and nozzle, exhaust systems, crown modules, and vane boxes and transition ducts. It also designs, engineers, and manufactures assemblies and components, such as stage rocket motors, solid propellant rocket motors, and rocket weapon systems; wire strike protection systems for helicopter safety; space solutions, including small satellite bus platforms and satellite subsystem equipment, as well as offers services for satellite assembly, integration, and testing; and aluminum and magnesium alloy sand castings, such as engine mounted accessory gearbox housings, helicopter power transmission housings, auxiliary power unit inlet and gearbox housings, engine front inlet and intermediate cases, engine front frames and fan cases, pump and accessory drive housings, and environmental control housings. In addition, the company offers maintenance, repair, and overhaul for various engine and components MRO, as well as lifecycle management services to logistics, fleet management, and engineering services. Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.