Conrad Industries (OTCMKTS:CNRD) & Airbus (OTCMKTS:EADSY) Critical Contrast

Airbus (OTCMKTS:EADSY) and Conrad Industries (OTCMKTS:CNRD) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for Airbus and Conrad Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Airbus	0	3	5	1	2.78
Conrad Industries	0	0	0	0	0.00

Valuation and Earnings

This table compares Airbus and Conrad Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Airbus	$74.92 billion	2.42	$4.58 billion	$1.69	33.92
Conrad Industries	$303.41 million	0.41	$11.23 million	($0.34)	-73.68

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

Dividends

Airbus pays an annual dividend of $0.41 per share and has a dividend yield of 0.7%. Conrad Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Airbus pays out 24.3% of its earnings in the form of a dividend. Conrad Industries pays out -117.6% 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. Conrad Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

0.3% of Airbus shares are owned by institutional investors. Comparatively, 0.6% of Conrad Industries shares are owned by institutional investors. 31.5% of Conrad Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Airbus has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Conrad Industries has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Profitability

This table compares Airbus and Conrad Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Airbus	7.01%	24.38%	3.85%
Conrad Industries	5.30%	20.25%	11.34%

Summary

Airbus beats Conrad Industries on 11 of the 16 factors compared between the two stocks.

About Airbus

Airbus SE, together with its subsidiaries, engages in the design, manufacture, and delivery of aerospace products, services, and solutions worldwide. It operates through three segments: Airbus, Airbus Helicopters, and Airbus Defence and Space. The Airbus segment develops, manufactures, markets, and sells commercial jet passenger aircraft, freighter aircraft, regional turboprop aircraft, and aircraft components, as well as provides aircraft conversion and related services. The Airbus Helicopters segment develops, manufactures, markets, and sells civil and military helicopters; and provides helicopter-related services. The Airbus Defence and Space segment designs, develops, delivers, and supports military air systems and related services. This segment also offers civil and defence space systems for telecommunications, earth observations, navigation, and science and orbital systems; missile and space launcher systems; and services around data processing from platforms, secure communication, and cyber security. The company was formerly known as Airbus Group SE and changed its name to Airbus SE in April 2017. Airbus SE was incorporated in 1998 and is headquartered in Leiden, the Netherlands.

About Conrad Industries

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.