CAE (NYSE:CAE) versus Exail Technologies (OTCMKTS:GGRGF) Financial Analysis

CAE (NYSE:CAE) and Exail Technologies (OTCMKTS:GGRGF) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Insider & Institutional Ownership

67.4% of CAE shares are owned by institutional investors. Comparatively, 6.8% of Exail Technologies shares are owned by institutional investors. 18.3% of CAE shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares CAE and Exail Technologies’ net margins, return on equity and return on assets.

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

Analyst Ratings

This is a summary of recent recommendations for CAE and Exail Technologies, as provided by MarketBeat.com.

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

CAE presently has a consensus price target of $28.00, suggesting a potential upside of 46.52%. Given CAE’s higher probable upside, equities analysts plainly believe CAE is more favorable than Exail Technologies.

Valuation & Earnings

This table compares CAE and Exail Technologies”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	1.41	-$225.35 million	($0.72)	-26.64
Exail Technologies	N/A	N/A	N/A	$0.52	34.73

Exail Technologies has lower revenue, but higher earnings than CAE. CAE is trading at a lower price-to-earnings ratio than Exail Technologies, indicating that it is currently the more affordable of the two stocks.

Dividends

CAE pays an annual dividend of $0.33 per share and has a dividend yield of 1.7%. Exail Technologies pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. CAE pays out -45.7% of its earnings in the form of a dividend. Exail Technologies pays out 61.7% 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.

Summary

CAE beats Exail Technologies on 8 of the 12 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 Exail Technologies

Exail Technologies provides robotics, maritime, navigation, aerospace, and photonics technologies solutions in France and internationally. It offers components, products, and systems for naval defense, maritime, aerospace, photonics, land defense, and other industries. The company was founded in 1988 and is headquartered in Paris, France.