Head-To-Head Review: CAE (NYSE:CAE) & ZenaTech (NASDAQ:ZENA)

CAE (NYSE:CAE) and ZenaTech (NASDAQ:ZENA) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CAE and ZenaTech, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAE	1	3	7	0	2.55
ZenaTech	1	1	2	0	2.25

CAE currently has a consensus price target of $33.33, indicating a potential upside of 29.20%. ZenaTech has a consensus price target of $4.50, indicating a potential upside of 415.76%. Given ZenaTech’s higher possible upside, analysts plainly believe ZenaTech is more favorable than CAE.

Institutional and Insider Ownership

67.4% of CAE shares are held by institutional investors. 18.3% of CAE shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CAE and ZenaTech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAE	6.36%	7.45%	3.51%
ZenaTech	-306.35%	-3,081.41%	-76.55%

Risk and Volatility

CAE has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500. Comparatively, ZenaTech has a beta of 7.34, suggesting that its share price is 634% more volatile than the S&P 500.

Earnings & Valuation

This table compares CAE and ZenaTech”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAE	$4.99 billion	1.65	$226.62 million	$0.65	39.69
ZenaTech	$27.27 million	6.44	-$32.36 million	($1.48)	-0.59

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

Summary

CAE beats ZenaTech on 11 of the 14 factors compared between the two stocks.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.

About ZenaTech

ZenaTech, Inc., an enterprise software technology company, develops cloud-based software applications in Canada. It provides cryptocurrency wallets and cloud-based enterprise software solutions for the agriculture industry; cloud-based enterprise software solutions for the medical records industry; safety and compliance management software and mobile solutions; field management software and mobile solutions; integrated cloud-based enterprise software and hardware drone technology solutions for various industries; and browser-based enterprise software applications for public safety. ZenaTech, Inc. was formerly known as ZenaDrone, Inc. and changed its name to ZenaTech, Inc. on October 5, 2020. The company was incorporated in 2017 and is based in Toronto, Canada.