Reviewing American Science & Engineering (ASEI) & B/E Aerospace (BEAV)

American Science & Engineering (NASDAQ: ASEI) and B/E Aerospace (NASDAQ:BEAV) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Dividends

American Science & Engineering pays an annual dividend of $2.00 per share and has a dividend yield of 5.4%. B/E Aerospace pays an annual dividend of $0.84 per share and has a dividend yield of 1.3%. American Science & Engineering pays out -540.5% of its earnings in the form of a dividend. B/E Aerospace pays out 27.3% 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. American Science & Engineering is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares American Science & Engineering and B/E Aerospace’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Science & Engineering N/A N/A N/A ($0.37) -100.14
B/E Aerospace N/A N/A N/A $3.08 20.93

American Science & Engineering is trading at a lower price-to-earnings ratio than B/E Aerospace, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Science & Engineering and B/E Aerospace’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Science & Engineering 0.19% 0.15% 0.13%
B/E Aerospace 8.25% 94.11% 6.79%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Science & Engineering and B/E Aerospace, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Science & Engineering 0 0 0 0 N/A
B/E Aerospace 0 3 0 0 2.00

B/E Aerospace has a consensus price target of $61.67, suggesting a potential downside of 4.35%. Given B/E Aerospace’s higher possible upside, analysts plainly believe B/E Aerospace is more favorable than American Science & Engineering.

Insider & Institutional Ownership

72.9% of American Science & Engineering shares are owned by institutional investors. Comparatively, 92.0% of B/E Aerospace shares are owned by institutional investors. 2.4% of American Science & Engineering shares are owned by company insiders. Comparatively, 0.5% of B/E Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

B/E Aerospace beats American Science & Engineering on 7 of the 10 factors compared between the two stocks.

American Science & Engineering Company Profile

American Science and Engineering, Inc. (AS&E) is engaged in developing, manufacturing, marketing and selling X-ray inspection and other detection products. The Company manufactures X-ray inspection products that can be used to inspect parcels, baggage, vehicles, pallets, cargo containers and people. The Company offers its products for homeland security, force protection, public safety and other critical defense and security applications. The Company’s products and services are grouped into approximately five areas: cargo inspection systems, which include OmniView Gantry System, Z Portal System, Sentry Portal System, CarView System and ASE Connect; mobile cargo inspection systems, which include Z Backscatter Van; parcel and personnel screening inspection systems, which include Gemini System, SmartCheck System and MINI Z System; custom products, and service and support.

B/E Aerospace Company Profile

B/E Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets. The Company sells its products and provides services directly to airlines and aerospace manufacturer. It operates through two segments. The Company manufactures aircraft seats, offering a selection of first class, business class, tourist class and regional aircraft seats. It manufactures and sells seats, which include the seat frame, cushions, armrests, tray table and a range of optional features, such as adjustable lumbar supports, electrical actuation systems, footrests, reading lights, head/neck supports and other comfort amenities. The business jet segment’s products include a range of business jet seating and sofa products, including electric fully berthing lie-flat seats, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables.

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