Leaving on a Jet Plane? Airbus vs. Boeing

Boeing is Supporting Growth

BA’s level of capital investment seems appropriate given the company’s growth. The company’s annualized rate of change in capital of 2.6% over the past three years is higher than that of competitors (the average is 0.1%). This investment has generated a better return on capital as well (24.0% averaged over the same three years). Evidently, the relatively high capital investment was successful given the relatively strong growth in its returns. In contrast, EAD’s annualized rate of change in capital of -1.4% over the past three years is less than the average (0.1%). This lower investment level has also generated a lower return on capital (6.6% averaged over the same three years). This suggests that EAD has invested capital relatively poorly and now may be in maintenance mode.

Peer List

Our peer list for today’s Airbus vs. Boeing analysis: European Aeronautic Defence & Space NV (EURONEXT PARIS:EAD), The Boeing Company (NYSE:BA), United Technologies Corporation (NYSE:UTX), Lockheed Martin Corporation (NYSE:LMT), Raytheon Company (NYSE:RTN) and Dassault Aviation SA (EPA:AM). Note that we used CapitalCube’s custom peers feature to customize this peer list.

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