Reviewing Bombardier (OTCMKTS:BDRBF) & Avon Protection (OTCMKTS:AVNBF)

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

Insider & Institutional Ownership

45.1% of Avon Protection shares are owned by institutional investors. Comparatively, 17.5% of Bombardier shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Avon Protection pays an annual dividend of C$0.05 per share and has a dividend yield of 0.3%. Bombardier pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Avon Protection pays out 11.2% 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. Avon Protection is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Avon Protection and Bombardier’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avon Protection	N/A	N/A	N/A
Bombardier	N/A	N/A	N/A

Valuation and Earnings

This table compares Avon Protection and Bombardier”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avon Protection	N/A	N/A	N/A	C$0.42	43.14
Bombardier	N/A	N/A	N/A	$0.25	276.29

Avon Protection is trading at a lower price-to-earnings ratio than Bombardier, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Avon Protection and Bombardier, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avon Protection	0	0	0	0	0.00
Bombardier	0	0	2	0	3.00

Bombardier has a consensus target price of $129.00, indicating a potential upside of 89.62%. Given Bombardier’s stronger consensus rating and higher possible upside, analysts clearly believe Bombardier is more favorable than Avon Protection.

About Avon Protection

Avon Protection plc provides respiratory, chemical, biological, radiological, and nuclear and head protection solutions for military and first responder agencies in the United Kingdom, Europe, and the United States. The company offers respiratory products, including respirators, filters, powered and supplied air, escape hoods, underwater systems, and thermal image camera, and CBRN protective wear, as well as spares and accessories. It also provides head protection products, such as ballistic helmets, bump protection helmets, helmet liners, and retention system. It offers its products under the Avon Protection and Team Wendy brands. The company was formerly known as Avon Rubber p.l.c. and changed its name to Avon Protection plc in July 2021. Avon Protection plc was incorporated in 1890 and is headquartered in Melksham, 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.