Critical Contrast: Bombardier (OTCMKTS:BDRBF) vs. Chemring Group (OTC:CMGMF)

Chemring Group (OTC:CMGMF) and Bombardier (OTCMKTS:BDRBF) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Chemring Group and Bombardier, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chemring Group	0	0	0	0	0.00
Bombardier	0	0	2	0	3.00

Bombardier has a consensus price target of $129.00, suggesting a potential upside of 97.28%. Given Bombardier’s stronger consensus rating and higher probable upside, analysts clearly believe Bombardier is more favorable than Chemring Group.

Dividends

Chemring Group pays an annual dividend of C$0.04 per share and has a dividend yield of 0.9%. Bombardier pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Chemring Group pays out -6.3% of its earnings in the form of a dividend. Bombardier pays out 37.6% 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. Chemring Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

60.7% of Chemring Group shares are held by institutional investors. Comparatively, 17.5% of Bombardier shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Chemring Group and Bombardier’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
Bombardier	N/A	N/A	N/A

Valuation and Earnings

This table compares Chemring Group and Bombardier”s top-line revenue, earnings per share (EPS) 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)	-7.33
Bombardier	N/A	N/A	N/A	$0.25	265.57

Chemring Group 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 Chemring Group on 5 of the 8 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 Bombardier

Bombardier Inc. engages in the design, manufacture, and sale of business aircraft and aircraft structural components worldwide. It provides new aircraft, specialized aircraft solutions, and pre-owned aircraft. The company also offers aftermarket services, including parts, service centers, smart services, training, and technical publications. It serves multinational corporations, charter and fractional ownership providers, governments, and private individuals. The company was incorporated in 1902 and is based in Dorval, Canada.