Embraer-Empresa Brasileira de Aeronautica (EMBJ) vs. Its Peers Critical Contrast

Embraer-Empresa Brasileira de Aeronautica (NYSE:EMBJ) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare Embraer-Empresa Brasileira de Aeronautica to related businesses based on the strength of its risk, analyst recommendations, earnings, institutional ownership, valuation, profitability and dividends.

Profitability

This table compares Embraer-Empresa Brasileira de Aeronautica and its peers’ 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%
Embraer-Empresa Brasileira de Aeronautica Competitors	-289.58%	-47.50%	-4.35%

Risk and Volatility

Embraer-Empresa Brasileira de Aeronautica has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Embraer-Empresa Brasileira de Aeronautica’s peers have a beta of 1.34, indicating that their average stock price is 34% more volatile than the S&P 500.

Insider & Institutional Ownership

34.6% of Embraer-Empresa Brasileira de Aeronautica shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.0% of Embraer-Empresa Brasileira de Aeronautica shares are owned by insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Embraer-Empresa Brasileira de Aeronautica pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Embraer-Empresa Brasileira de Aeronautica pays out 20.2% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.9% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Embraer-Empresa Brasileira de Aeronautica and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer-Empresa Brasileira de Aeronautica	0	0	3	1	3.25
Embraer-Empresa Brasileira de Aeronautica Competitors	2151	8239	12728	579	2.50

Embraer-Empresa Brasileira de Aeronautica currently has a consensus price target of $92.50, indicating a potential upside of 23.14%. As a group, “Aerospace & Defense” companies have a potential upside of 25.02%. Given Embraer-Empresa Brasileira de Aeronautica’s peers higher probable upside, analysts plainly believe Embraer-Empresa Brasileira de Aeronautica has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Embraer-Empresa Brasileira de Aeronautica and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Embraer-Empresa Brasileira de Aeronautica	$7.58 billion	$351.90 million	30.41
Embraer-Empresa Brasileira de Aeronautica Competitors	$8.43 billion	$569.01 million	25.13

Embraer-Empresa Brasileira de Aeronautica’s peers have higher revenue and earnings than Embraer-Empresa Brasileira de Aeronautica. Embraer-Empresa Brasileira de Aeronautica is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Embraer-Empresa Brasileira de Aeronautica beats its peers on 9 of the 15 factors compared.

Embraer-Empresa Brasileira de Aeronautica Company Profile

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.