EnerSys (NYSE:ENS) vs. CAE (NYSE:CAE) Head-To-Head Review

CAE (NYSE:CAE) and EnerSys (NYSE:ENS) are both mid-cap aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.

Institutional and Insider Ownership

56.3% of CAE shares are owned by institutional investors. Comparatively, 95.0% of EnerSys shares are owned by institutional investors. 18.3% of CAE shares are owned by company insiders. Comparatively, 1.4% of EnerSys shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CAE and EnerSys, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAE 1 4 5 0 2.40
EnerSys 0 1 1 0 2.50

CAE presently has a consensus target price of $40.44, indicating a potential upside of 32.30%. EnerSys has a consensus target price of $112.50, indicating a potential upside of 40.66%. Given EnerSys’ stronger consensus rating and higher probable upside, analysts clearly believe EnerSys is more favorable than CAE.

Valuation & Earnings

This table compares CAE and EnerSys’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CAE $2.26 billion 4.29 -$35.77 million $0.36 84.92
EnerSys $2.98 billion 1.14 $143.37 million $4.49 17.81

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

Profitability

This table compares CAE and EnerSys’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAE 3.50% 7.39% 2.66%
EnerSys 4.92% 13.76% 6.09%

Risk & Volatility

CAE has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500. Comparatively, EnerSys has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Summary

EnerSys beats CAE on 9 of the 14 factors compared between the two stocks.

CAE Company Profile

CAE, Inc. engages in the provision of digital immersion and training services for the civil aviation, defense and security, and healthcare markets. It operates through the following segments: Civil Aviation Training Solutions, Defence and Security, and Healthcare. The Civil Aviation Training Solutions segment focuses on aviation professionals, airlines, business aviation operators, and aircraft manufacturers. The Defence and Security segment offers a portfolio of training centers, training services, and simulation products across the air, land, naval, and public safety market. The Healthcare segment includes patient simulation, interventional and imaging simulation, center management solutions, and learning modules. The company was founded by Kenneth R. Patrick in 1947 and is headquartered in Saint-Laurent, Canada.

EnerSys Company Profile

EnerSys engages in the provision of stored energy solutions for industrial applications. The company operates through the following segments: Energy Systems, Motive Power, and Specialty. The Energy Systems segment, which combine enclosures, power conversion, power distribution, and energy storage are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and other applications requiring stored energy solutions. The Motive Power segment engages in the batteries and chargers that are utilized in electric forklift trucks and other industrial electric powered vehicles. The Specialty segment, which are used in aerospace and defense applications, large over-the-road trucks, automotive, medical, and security systems applications. It also provides battery chargers, power equipment, battery accessories, and outdoor equipment enclosure solutions; and aftermarket and customer support services. EnerSys was founded in October 2000 and is headquartered in Reading, Pennsylvania.

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