Critical Survey: CAE (NYSE:CAE) versus Lilium (NASDAQ:LILMW)

CAE (NYSE:CAE) and Lilium (NASDAQ:LILMW) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares CAE and Lilium’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CAE	-7.38%	5.96%	2.64%
Lilium	N/A	N/A	N/A

Insider & Institutional Ownership

67.4% of CAE shares are held by institutional investors. 18.3% of CAE shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for CAE and Lilium, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAE	1	6	1	0	2.00
Lilium	0	0	0	0	N/A

CAE currently has a consensus price target of $28.00, suggesting a potential upside of 46.94%. Given CAE’s higher probable upside, research analysts plainly believe CAE is more favorable than Lilium.

Valuation and Earnings

This table compares CAE and Lilium”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAE	$4.34 billion	1.40	-$225.35 million	($0.72)	-26.47
Lilium	N/A	N/A	N/A	N/A	N/A

Lilium has lower revenue, but higher earnings than CAE.

Summary

CAE beats Lilium on 7 of the 8 factors compared between the two stocks.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.

About Lilium

Lilium N.V. engages in the research and development of electric vertical takeoff and landing aircrafts and jet for use in high-speed air transport system for people and goods. It also provides aircraft manufacturer services, including training services, maintenance operations, material management and global distribution, flight operations support, ground service equipment, and digital solutions. The company was founded in 2015 and is headquartered in Gauting, Germany.