Butler National (OTCMKTS:BUKS) and GE Aerospace (NYSE:GE) Critical Review

Butler National (OTCMKTS:BUKS) and GE Aerospace (NYSE:GE) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Volatility & Risk

Butler National has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, GE Aerospace has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Earnings and Valuation

This table compares Butler National and GE Aerospace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Butler National	$83.97 million	3.97	$12.55 million	$0.30	13.90
GE Aerospace	$45.86 billion	7.36	$8.70 billion	$8.12	39.83

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Butler National and GE Aerospace, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Butler National	0	0	0	0	0.00
GE Aerospace	1	2	16	1	2.85

GE Aerospace has a consensus price target of $348.22, indicating a potential upside of 7.66%. Given GE Aerospace’s stronger consensus rating and higher possible upside, analysts plainly believe GE Aerospace is more favorable than Butler National.

Institutional & Insider Ownership

5.0% of Butler National shares are owned by institutional investors. Comparatively, 74.8% of GE Aerospace shares are owned by institutional investors. 17.6% of Butler National shares are owned by insiders. Comparatively, 0.2% of GE Aerospace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Butler National and GE Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Butler National	21.45%	28.47%	15.08%
GE Aerospace	17.86%	37.99%	5.61%

Summary

GE Aerospace beats Butler National on 12 of the 15 factors compared between the two stocks.

About Butler National

Butler National Corporation, together with its subsidiaries, designs, engineers, manufactures, sells, integrates, installs, repairs, modifies, overhauls, services, and distributes a portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems in North America, Europe, the Middle East, Asia, and internationally. It operates through two segments, Aerospace Products and Professional Services. The Aerospace Products segment provides aircraft modifications to business-size aircraft, which include passenger-to-freighter configuration, radar systems, addition of aerial photography capabilities, search and rescue, environmental research, mapping, intelligence surveillance reconnaissance modifications, and stability enhancing modifications for Learjet, Beechcraft, and Cessna aircraft along with other specialized modifications. This segment manufactures, sells, and services electronics for weapon control systems that are used on government aircraft and vehicles; and sells, installs, and repairs aircraft avionics equipment, including airplane radio equipment and flight control systems, as well as troubleshoots and repairs autopilot systems. Its Professional Services segment manages Boot Hill Casino and Resort, a gaming, dining, and entertainment facility in Dodge City, Kansas. The company acquires, refurbishes, and sells airplanes, primarily Learjets; owns properties; and operates a management consulting and administrative services firm that provides business planning and financial coordination to Indian tribes interested in owning and operating casinos. It serves the aviation industry, including owners and operators of private and commercial business and government aircraft and suppliers. Butler National Corporation was incorporated in 1960 and is headquartered in New Century, Kansas.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.