B/E Aerospace (BEAV) and Mercury Systems (MRCY) Critical Analysis

B/E Aerospace (NASDAQ: BEAV) and Mercury Systems (NASDAQ:MRCY) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

92.0% of B/E Aerospace shares are held by institutional investors. Comparatively, 94.4% of Mercury Systems shares are held by institutional investors. 0.5% of B/E Aerospace shares are held by company insiders. Comparatively, 3.5% of Mercury Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for B/E Aerospace and Mercury Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
B/E Aerospace 0 1 0 0 2.00
Mercury Systems 0 2 5 0 2.71

B/E Aerospace presently has a consensus target price of $62.00, suggesting a potential upside of Infinity. Mercury Systems has a consensus target price of $54.00, suggesting a potential upside of 17.75%. Given B/E Aerospace’s higher probable upside, equities analysts plainly believe B/E Aerospace is more favorable than Mercury Systems.


This table compares B/E Aerospace and Mercury Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
B/E Aerospace 8.25% 94.11% 6.79%
Mercury Systems 9.61% 6.32% 5.34%


B/E Aerospace pays an annual dividend of $0.84 per share. Mercury Systems does not pay a dividend. B/E Aerospace pays out 27.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares B/E Aerospace and Mercury Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
B/E Aerospace N/A N/A N/A $3.08 N/A
Mercury Systems $408.59 million 5.41 $24.87 million $0.92 49.85

Mercury Systems has higher revenue and earnings than B/E Aerospace. B/E Aerospace is trading at a lower price-to-earnings ratio than Mercury Systems, indicating that it is currently the more affordable of the two stocks.


Mercury Systems beats B/E Aerospace on 8 of the 12 factors compared between the two stocks.

B/E Aerospace Company Profile

B/E Aerospace, Inc. is a manufacturer of cabin interior products for commercial aircraft and business jets. The Company sells its products and provides services directly to airlines and aerospace manufacturer. It operates through two segments. The Company manufactures aircraft seats, offering a selection of first class, business class, tourist class and regional aircraft seats. It manufactures and sells seats, which include the seat frame, cushions, armrests, tray table and a range of optional features, such as adjustable lumbar supports, electrical actuation systems, footrests, reading lights, head/neck supports and other comfort amenities. The business jet segment’s products include a range of business jet seating and sofa products, including electric fully berthing lie-flat seats, air valves and oxygen delivery systems as well as sidewalls, bulkheads, credenzas, closets, galley structures, lavatories, wastewater systems, de-icing systems, cabin management systems and tables.

Mercury Systems Company Profile

Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.

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