Which shares to choose Airbus or Boeing
The end of the pandemic and the lifting of restrictions related to COVID-19 helped restore demand for air travel.
This factor had a positive impact on the stock price of aircraft manufacturing companies, securities that had significantly lost value during the pandemic.
Today, there are several reasons to say that investing in shares of aircraft manufacturing companies will bring good profits.
According to most experts, this market segment is now undervalued, and the end of geopolitical tensions will serve as a good impetus for growth.
Comparison of Airbus or Boeing
Everything is learned by comparison, so let’s compare the advantages and disadvantages of these two companies.
Aircraft manufacturing company Airbus:
Advantages:
- Airbus has a more diversified order book than Boeing, making it less susceptible to fluctuations in demand for specific aircraft models.
- The company has lower production costs than its competitor, allowing it to offer lower prices.
- Airbus is the market leader in passenger aircraft, which gives it a competitive advantage.
- Dividend yield is about 1% per annum.
Flaws:
- Airbus has a higher debt load than Boeing, which could make it more vulnerable to economic downturns.
- The company relies heavily on government subsidies, which may make it vulnerable to changes in government policy.
Aircraft manufacturing company Boeing:
Advantages:
- Boeing is a leader in the military aircraft market, which provides it with a stable source of revenue.
- Invests heavily in research and development, which could lead to the creation of new, more competitive aircraft.
Flaws:
- Boeing is experiencing delays in deliveries of its 787 Dreamliner aircraft, which could result in the loss of customers.
- The trade war between the US and China could negatively impact Boeing as China is one of its largest markets.
- Boeing has not paid dividends since 2020.
Should you choose Airbus or Boeing?
By most indicators, Airbus is currently more attractive. It pays dividends, and the quality of its aircraft currently outperforms Boeing, which only assembles aircraft.
The quality and safety of Boeing aircraft is noticeably decreasing every year, and this can lead to a drop in orders and a decrease in the value of the company's securities.
Therefore, it is definitely worth buying only Airbus shares that have great prospects for price growth and dividend yield.
You can buy shares of Airbus Group SE from the following brokers - https://time-forex.com/vsebrokery/brokery-fondowogo-rynka asset designation in the trading platform (AIR)