Contrasting Chemring Group (OTC:CMGMF) and GE Aerospace (NYSE:GE)

Chemring Group (OTC:CMGMF) and GE Aerospace (NYSE:GE) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, valuation, earnings and institutional ownership.

Dividends

Chemring Group pays an annual dividend of C$0.04 per share and has a dividend yield of 0.6%. GE Aerospace pays an annual dividend of $1.44 per share and has a dividend yield of 0.6%. Chemring Group pays out -6.3% of its earnings in the form of a dividend. GE Aerospace pays out 22.4% 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. GE Aerospace has increased its dividend for 2 consecutive years. GE Aerospace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

60.7% of Chemring Group shares are held by institutional investors. Comparatively, 74.8% of GE Aerospace shares are held by institutional investors. 0.2% of GE Aerospace shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Chemring Group and GE Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemring Group	0	0	0	0	0.00
GE Aerospace	0	1	11	0	2.92

GE Aerospace has a consensus target price of $221.15, indicating a potential downside of 6.32%. Given GE Aerospace’s stronger consensus rating and higher probable upside, analysts clearly believe GE Aerospace is more favorable than Chemring Group.

Earnings and Valuation

This table compares Chemring Group and GE Aerospace”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chemring Group	N/A	N/A	N/A	C($0.60)	-10.64
GE Aerospace	$39.68 billion	6.34	$6.56 billion	$6.43	36.71

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chemring Group	N/A	N/A	N/A
GE Aerospace	14.31%	22.19%	3.66%

Summary

GE Aerospace beats Chemring Group on 13 of the 14 factors compared between the two stocks.

About Chemring Group

Chemring Group PLC provides countermeasures, sensors, information, and energetic products in the United States, the United Kingdom, Europe, the Asia pacific, and internationally. The company offers sensors and information products, such as point chemical detector, sensor, JSLSCAD, and I-SCAD; miniature radar altimeter, R Visor, 3D radars, husky mounted detection system, groundshark, MDS-10, and groundhunters; resolve, locate, LOCATE-T, and viper products; and advisory, research, and design and engineering services. It also provides countermeasures and energetics products, including aerodynamic and kinematic flare; chaf cart and pack; seduction and distraction cart; initiator, separation and explosive bolts, nuts, and pin pullers and pushers; initiators, actuators, retractors and systems, time delay devices, ejection handles and sequencers, gas generators, cutters, canopy remover thruster, and thermal battery; wing, fin, elevon deployment actuators, wing and tail retention systems, separation nuts, pyrovalves, and safe and arm devices; joint combined aircrew system, system communication and oxygen, and altitude combined aircrew system tester; HMX, RDX, NTO, Alkyl-NENA, and acetic acid; and advanced performance bangalore torpedo, SX4, PE8, charge demolition user filled conical and linear, igniter safety fuze electric, detonating cord booster, demolition detonator electric and non-electric, detonating cord, and safety fuze. In addition, the company offers metron actuators and gas generators; igniters and fuzeheads, and canopy severance cords and explosive transmission cords; extruded double base propellant for ejection systems and rocket motors; and PED MK 2, breach MC, shrike exploder, mini shrike, long range initiation system, WASP, pigstick, hotrod, mini and midi disruptor, freeze neutralizing kit, fuse extractor, and rocket wrench. Chemring Group PLC was incorporated in 1905 and is headquartered in Romsey, the United Kingdom.

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.