Contrasting Environmental Tectonics (OTCMKTS:ETCC) and Saab (OTCMKTS:SAABY)

Saab (OTCMKTS:SAABY) and Environmental Tectonics (OTCMKTS:ETCC) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings for Saab and Environmental Tectonics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	2	1	0	1	2.00
Environmental Tectonics	0	0	0	0	0.00

Volatility and Risk

Saab has a beta of -0.12, suggesting that its stock price is 112% less volatile than the S&P 500. Comparatively, Environmental Tectonics has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Profitability

This table compares Saab and Environmental Tectonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab	7.17%	13.23%	4.94%
Environmental Tectonics	18.27%	-732.63%	12.79%

Valuation & Earnings

This table compares Saab and Environmental Tectonics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saab	$6.03 billion	4.82	$394.58 million	$0.62	43.82
Environmental Tectonics	$62.94 million	0.19	$13.06 million	$0.74	1.73

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

Summary

Saab beats Environmental Tectonics on 7 of the 11 factors compared between the two stocks.

About Saab

Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.