BAE SYS PLC/S (OTCMKTS:BAESY) and SEVEN & I HOLDI/ADR (OTCMKTS:SVNDY) are both large-cap aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for BAE SYS PLC/S and SEVEN & I HOLDI/ADR, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BAE SYS PLC/S 0 4 3 0 2.43
SEVEN & I HOLDI/ADR 0 0 0 0 N/A

Institutional & Insider Ownership

0.4% of BAE SYS PLC/S shares are held by institutional investors. Comparatively, 0.2% of SEVEN & I HOLDI/ADR shares are held by institutional investors. 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

BAE SYS PLC/S has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, SEVEN & I HOLDI/ADR has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Earnings & Valuation

This table compares BAE SYS PLC/S and SEVEN & I HOLDI/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BAE SYS PLC/S $22.52 billion 0.78 $1.65 billion $2.04 10.81
SEVEN & I HOLDI/ADR $61.47 billion 0.46 $1.83 billion $1.50 10.66

SEVEN & I HOLDI/ADR has higher revenue and earnings than BAE SYS PLC/S. SEVEN & I HOLDI/ADR is trading at a lower price-to-earnings ratio than BAE SYS PLC/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BAE SYS PLC/S and SEVEN & I HOLDI/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BAE SYS PLC/S N/A N/A N/A
SEVEN & I HOLDI/ADR N/A N/A N/A

Dividends

BAE SYS PLC/S pays an annual dividend of $0.93 per share and has a dividend yield of 4.2%. SEVEN & I HOLDI/ADR pays an annual dividend of $0.18 per share and has a dividend yield of 1.1%. BAE SYS PLC/S pays out 45.6% of its earnings in the form of a dividend. SEVEN & I HOLDI/ADR pays out 12.0% 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.

Summary

BAE SYS PLC/S beats SEVEN & I HOLDI/ADR on 7 of the 10 factors compared between the two stocks.

About BAE SYS PLC/S

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Cyber & Intelligence, Platforms & Services (US), Air, and Maritime. The Electronic Systems segment offers electronic warfare systems and electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance systems, and hybrid electric drive systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for C4ISR systems and enterprise IT networks; and solutions to enhance the collection, analysis, and processing of data across the US civilian and military intelligence communities. It also offers data intelligence solutions to defend against national-scale threats, protect their networks, data against attacks; security and intelligence solutions to the UK government and allied international governments; anti-fraud and regulatory compliance solutions; and security advisory and managed security services. The Platforms & Services (US) segment manufactures combat vehicles, weapons, and munitions, as well as provides ship repair services and the management of government-owned munitions facilities. The Air segment develops, manufactures, upgrades, and supports combat and jet trainer aircraft. The Maritime segment designs, manufactures, and supports surface ships, submarines, torpedoes, radars, and command and combat systems. It also supplies naval gun system; and provides ammunitions, precision munitions, artillery systems, and missile launchers. BAE Systems plc was incorporated in 1979 and is based in London, the United Kingdom.

About SEVEN & I HOLDI/ADR

Seven & i Holdings Co., Ltd. engages in retail, food, financial, and IT businesses. The company's Domestic Convenience Store Operations segment operates convenience stores. As of May 31, 2018, it operated 19,943 franchised stores and 442 directly operated stores in Japan; and a number of 7-Eleven convenience stores in China and Hawaii. Its Overseas Convenience Store Operations segment engages in convenience store and gasoline retail businesses. As of March 31, 2018, it operated 7,166 franchised stores and 2,530 directly operated stores in the United States and Canada; and 35,548 7-Eleven licensed convenience stores. The company's Superstore Operations segment operates Ito-Yokado superstores, which offers food items, apparel, and household goods, as well as York-Benimaru, York Mart, and The Garden Jiyugaoka supermarkets in Japan. As of May 31, 2018, it operated Ito-Yokado stores in 164 locations. Its Department Store Operations operates department stores that provide apparel, luxury goods, cosmetics, specialty products, and food items. As of May 31, 2018, it operated 15 department stores under the Sogo and Seibu brands in Japan. The company's Financial Services segment offers banking, ATM, leasing, insurance, credit card, and e-money services. As of May 31, 2018, the Seven Bank operated 24,481 ATM locations in Japan; and March 31, 2018, it operated 13,413 ATMs in North America. Its Specialty Store Operations segment operates specialty retail stores; an online retailer under the Nissen name; and in restaurant, fast food, and contract businesses. As of May 31, 2018, it primarily operated 112 Akachan Honpo stores; 96 directly operated and 17 franchised stores under the THE LOFT name; and 12 Barneys New York branded stores, as well as February 28, 2018, it operated 488 restaurant and fast food locations. The company's others segment engages in real estate, publishing, and cultural education businesses. The company was founded in 2005 and is headquartered in Tokyo, Japan.

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