Embraer-Empresa Brasileira de Aeronautica (ERJ) Competitors

Embraer-Empresa Brasileira de Aeronautica (NYSE:ERJ) and Elbit Systems (NASDAQ:ESLT) are both large-cap aerospace 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, earnings and media sentiment.

Which has more risk & volatility, ERJ or ESLT?

Embraer-Empresa Brasileira de Aeronautica has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500. Comparatively, Elbit Systems has a beta of 0.33, indicating that its stock price is 67% less volatile than the S&P 500.

Is ERJ or ESLT a better dividend stock?

Embraer-Empresa Brasileira de Aeronautica pays an annual dividend of $0.05 per share and has a dividend yield of 0.1%. Elbit Systems pays an annual dividend of $2.00 per share and has a dividend yield of 0.4%. Embraer-Empresa Brasileira de Aeronautica pays out 2.3% of its earnings in the form of a dividend. Elbit Systems pays out 25.4% 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. Elbit Systems has raised its dividend for 1 consecutive years. Elbit Systems is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Does the media prefer ERJ or ESLT?

In the previous week, Embraer-Empresa Brasileira de Aeronautica had 11 more articles in the media than Elbit Systems. MarketBeat recorded 20 mentions for Embraer-Empresa Brasileira de Aeronautica and 9 mentions for Elbit Systems. Elbit Systems' average media sentiment score of 1.18 beat Embraer-Empresa Brasileira de Aeronautica's score of 1.02 indicating that Elbit Systems is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Embraer-Empresa Brasileira de Aeronautica	12 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	1 Negative mention(s)	1 Very Negative mention(s)	Positive
Elbit Systems	5 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher valuation & earnings, ERJ or ESLT?

Embraer-Empresa Brasileira de Aeronautica has higher earnings, but lower revenue than Elbit Systems. Embraer-Empresa Brasileira de Aeronautica is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Embraer-Empresa Brasileira de Aeronautica	$6.39B	1.64	$352.50M	$2.16	26.36
Elbit Systems	$6.83B	3.03	$321.14M	$7.88	59.01

Is ERJ or ESLT more profitable?

Embraer-Empresa Brasileira de Aeronautica has a net margin of 6.02% compared to Elbit Systems' net margin of 4.95%. Embraer-Empresa Brasileira de Aeronautica's return on equity of 16.43% beat Elbit Systems' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Embraer-Empresa Brasileira de Aeronautica	6.02%	16.43%	4.76%
Elbit Systems	4.95%	13.49%	3.92%

Do analysts rate ERJ or ESLT?

Embraer-Empresa Brasileira de Aeronautica currently has a consensus target price of $52.67, indicating a potential downside of 7.49%. Elbit Systems has a consensus target price of $500.00, indicating a potential upside of 7.52%. Given Elbit Systems' higher probable upside, analysts clearly believe Elbit Systems is more favorable than Embraer-Empresa Brasileira de Aeronautica.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Embraer-Empresa Brasileira de Aeronautica	1 Sell rating(s)	0 Hold rating(s)	4 Buy rating(s)	2 Strong Buy rating(s)	3.00
Elbit Systems	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00

Do insiders and institutionals hold more shares of ERJ or ESLT?

34.7% of Embraer-Empresa Brasileira de Aeronautica shares are held by institutional investors. Comparatively, 17.9% of Elbit Systems shares are held by institutional investors. 1.0% of Embraer-Empresa Brasileira de Aeronautica shares are held by company insiders. Comparatively, 0.8% of Elbit Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Embraer-Empresa Brasileira de Aeronautica beats Elbit Systems on 11 of the 19 factors compared between the two stocks.