Head-To-Head Review: Boeing (NYSE:BA) and L3Harris Technologies (NYSE:LHX)

Boeing (NYSE:BA) and L3Harris Technologies (NYSE:LHX) are both large-cap aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Dividends

Boeing pays an annual dividend of $8.22 per share and has a dividend yield of 4.6%. L3Harris Technologies pays an annual dividend of $4.80 per share and has a dividend yield of 1.7%. Boeing pays out -60.1% of its earnings in the form of a dividend. L3Harris Technologies pays out 51.6% 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. L3Harris Technologies has increased its dividend for 24 consecutive years. Boeing is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Boeing and L3Harris Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Boeing	-12.31%	N/A	-7.11%
L3Harris Technologies	7.94%	11.82%	5.47%

Analyst Ratings

This is a summary of current recommendations for Boeing and L3Harris Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Boeing	6	3	15	3	2.56
L3Harris Technologies	0	8	12	0	2.60

Boeing presently has a consensus target price of $232.09, suggesting a potential upside of 29.28%. L3Harris Technologies has a consensus target price of $295.29, suggesting a potential upside of 3.95%. Given Boeing’s higher possible upside, research analysts clearly believe Boeing is more favorable than L3Harris Technologies.

Institutional & Insider Ownership

64.8% of Boeing shares are held by institutional investors. Comparatively, 84.8% of L3Harris Technologies shares are held by institutional investors. 0.1% of Boeing shares are held by company insiders. Comparatively, 0.7% of L3Harris Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Boeing and L3Harris Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Boeing	$80.76 billion	1.69	-$11.82 billion	($13.68)	-13.12
L3Harris Technologies	$21.74 billion	2.44	$1.50 billion	$9.31	30.51

L3Harris Technologies has lower revenue, but higher earnings than Boeing. Boeing is trading at a lower price-to-earnings ratio than L3Harris Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Boeing has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, L3Harris Technologies has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

L3Harris Technologies beats Boeing on 11 of the 18 factors compared between the two stocks.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments. The Commercial Airplanes segment develops, produces, and markets commercial jet aircraft for passenger and cargo requirements, as well as provides fleet support services. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services to commercial and defense customers. The Boeing Company was incorporated in 1916 and is based in Arlington, Virginia.

About L3Harris Technologies

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, and networks and sensors, as well as advanced combat systems for air, land, and sea sectors. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations. The company's Communication Systems segment provides broadband communications; tactical radios, software, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios, and system applications and equipment. Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic, and tactical systems; and space propulsion and power systems for national security, and space and exploration missions. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is based in Melbourne, Florida.