Bombardier (OTCMKTS:BDRBF – Get Rating) and Sembcorp Marine (OTCMKTS:SMBMF – Get Rating) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Institutional & Insider Ownership
17.5% of Bombardier shares are owned by institutional investors. Comparatively, 7.3% of Sembcorp Marine shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Get Bombardier alerts:Dividends
Bombardier pays an annual dividend of $0.09 per share and has a dividend yield of 0.2%. Sembcorp Marine pays an annual dividend of $0.11 per share and has a dividend yield of 118.4%. Bombardier pays out 37.6% of its earnings in the form of a dividend. Sembcorp Marine pays out 40.4% 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.
Analyst Recommendations
This is a breakdown of recent ratings for Bombardier and Sembcorp Marine, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Bombardier | 0 | 2 | 6 | 0 | 2.75 |
| Sembcorp Marine | 0 | 0 | 1 | 0 | 3.00 |
Bombardier presently has a consensus target price of $70.13, indicating a potential upside of 40.73%. Given Bombardier's higher possible upside, research analysts clearly believe Bombardier is more favorable than Sembcorp Marine.
Profitability
This table compares Bombardier and Sembcorp Marine's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Bombardier | N/A | N/A | N/A |
| Sembcorp Marine | N/A | N/A | N/A |
Earnings & Valuation
This table compares Bombardier and Sembcorp Marine's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Bombardier | N/A | N/A | N/A | $0.25 | 202.37 |
| Sembcorp Marine | N/A | N/A | N/A | $0.27 | 0.34 |
Sembcorp Marine is trading at a lower price-to-earnings ratio than Bombardier, indicating that it is currently the more affordable of the two stocks.
Summary
Bombardier beats Sembcorp Marine on 5 of the 8 factors compared between the two stocks.
About Bombardier
(Get Rating)
Bombardier, Inc. engages in the design, development, and manufacture of business aircraft. It operates through the Business Aircraft Segment and Customer Services Segment. The Business Aircraft segment includes the manufacture of three families of business jets spanning from the light to large categories. Its models include: Global, Challenger, and Learjet aircraft. The Customer Services segment offers aircraft maintenance services as well as value added packages, including refurbishment and modification of business aircraft, component repair, and overhaul services. The company was founded on June 19, 1902 and is headquartered in Dorval, Canada.
About Sembcorp Marine
(Get Rating)
Sembcorp Marine Ltd. is an investment holding company, which engages in the provision of management services. It operates through the following segments: Rigs and Floaters, Repairs and Upgrades, Offshore Platforms, and Specialized Shipbuilding; Ship Chartering; and Others. The Others segment includes bulk trading in marine engineering related products; provision of harbour tug services to port users; collection and treatment of used copper slag; and the processing and distribution of copper slag for blast cleaning purposes. The company was founded on April 25, 1963 and is headquartered in Singapore.
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