The Boeing Company (BA) vs GE Aerospace (GE)

The Boeing Company and GE Aerospace are both Aerospace & Defense companies. GE Aerospace is the larger, with a market value of $323.7B against $149.2B — 2.2× the size. GE Aerospace trades at the lower P/E: 36.7× against 71.2×. The Boeing Company grew revenue faster over the last twelve months: 24.8% against 21.7%. GE Aerospace has the higher net margin (17.7% vs 2.22%) and the higher return on invested capital (26.5% vs 8.99%). Across the 21 metrics below, GE Aerospace leads on 13 and The Boeing Company on 8.

Valuation

Metric BA GE Aerospace & Defense median
P/E 71.24 36.73 31.81
P/S 1.60 6.46 3.55
P/B 24.61 18.30 2.59
Price to free cash flow n/m 47.70 31.99
EV/EBITDA 25.93 25.95 18.08
EV/Sales 1.88 6.65 3.37
Earnings yield 1.40% 2.72% 1.38%
Free cash flow yield (0.09%) 2.10% 0.21%

Profitability

Metric BA GE Aerospace & Defense median
Gross margin 4.68% 35.38% 25.48%
Operating margin 4.89% 23.20% 4.54%
Net margin 2.22% 17.72% 2.22%
Free cash flow margin (0.14%) 16.89% 1.43%
Return on equity 148.84% 48.22% 6.43%
Return on assets 1.30% 7.09% 2.70%
Return on invested capital 8.99% 26.53% 1.56%

Growth

Metric BA GE Aerospace & Defense median
Revenue growth (TTM) 24.78% 21.69% 18.43%
EPS growth (last fiscal year) 113.51% 35.89% 24.27%
Revenue growth, 5-year CAGR 9.00% (9.57%) 9.73%
Net income growth, 5-year CAGR 0.00% 10.72% 0.00%

Health

Metric BA GE Aerospace & Defense median
Debt to equity 7.51 1.07 0.24
Current ratio 1.14 0.98 2.72
Net debt to EBITDA 3.96 0.65 1.12

Dividend

Metric BA GE Aerospace & Defense median
Dividend yield — 0.56% 0.90%
Payout ratio — 0.21 0.32

Size

Metric BA GE Aerospace & Defense median
Market cap 149.17b 323.72b 2.19b

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