Analyzing Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) & Astronics (NASDAQ:ATRO)

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) and Astronics (NASDAQ:ATRO) are both industrials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Embraer-Empresa Brasileira de Aeronautica and Astronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer-Empresa Brasileira de Aeronautica	0	0	3	1	3.25
Astronics	0	3	2	2	2.86

Embraer-Empresa Brasileira de Aeronautica currently has a consensus price target of $92.50, suggesting a potential upside of 23.14%. Astronics has a consensus price target of $89.58, suggesting a potential upside of 49.43%. Given Astronics’ higher probable upside, analysts plainly believe Astronics is more favorable than Embraer-Empresa Brasileira de Aeronautica.

Valuation & Earnings

This table compares Embraer-Empresa Brasileira de Aeronautica and Astronics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embraer-Empresa Brasileira de Aeronautica	$7.58 billion	1.79	$351.90 million	$2.47	30.41
Astronics	$942.09 million	2.74	$29.36 million	$1.70	35.26

Embraer-Empresa Brasileira de Aeronautica has higher revenue and earnings than Astronics. Embraer-Empresa Brasileira de Aeronautica is trading at a lower price-to-earnings ratio than Astronics, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

34.6% of Embraer-Empresa Brasileira de Aeronautica shares are owned by institutional investors. Comparatively, 56.7% of Astronics shares are owned by institutional investors. 1.0% of Embraer-Empresa Brasileira de Aeronautica shares are owned by company insiders. Comparatively, 8.9% of Astronics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Embraer-Empresa Brasileira de Aeronautica and Astronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Embraer-Empresa Brasileira de Aeronautica	5.35%	11.90%	3.51%
Astronics	8.40%	67.69%	14.23%

Volatility & Risk

Embraer-Empresa Brasileira de Aeronautica has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Astronics has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500.

Summary

Astronics beats Embraer-Empresa Brasileira de Aeronautica on 9 of the 15 factors compared between the two stocks.

About Embraer-Empresa Brasileira de Aeronautica

Embraer S.A. designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. The company operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment designs, develops, manufactures, and sells commercial jets, as well as leases aircraft. The Defense & Security segment engages in the research, development, production, modification, and support for military defense and security aircraft; and offers a range of products and integrated solutions that include radars, special space systems, and cyber security solutions, as well as information and communications systems comprising command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. This segment also leases Phenom family executive jets in the entry jet and light jet categories; and Praetor 500 and Praetor 600, disruptive executive jets in the midsize and super midsize categories. The Service & Support segment provides after-service solutions and support services; maintenance, repair, and overhaul services for commercial, executive, and defense aircraft; and aircraft components and engines. This segment also supplies steel and composite aviation structures to various aircraft manufacturers. The Other segment engages in the supply of fuel systems, structural parts, and mechanical and hydraulic systems; and production of agricultural crop-spraying aircraft. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was incorporated in 1969 and is headquartered in São Paulo, Brazil.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.