Better Buy: Boeing vs. Airbus
Traditionally, Boeing (NYSE: BA) has done a better job of converting revenue into earnings and then earnings into free cash flow (FCF), and on that basis, it has been a better buy than Airbus (OTC: EADSY). However, the reality is the next few years will bring about a unique set of conditions in the commercial aviation market. It's far too simplistic to assume Boeing will outperform its rival, and not least with its stock price. Let's take a look at which stock is a better value.
Boeing shareholders were pleased to hear that, for the first time in two years, its net airplane orders were ahead of its rival in the first quarter. However, on closer inspection, the numbers don't look great for either company. Airbus reported 39 airplane orders in the first quarter, but 100 cancellations led to a net order decline of 61. Boeing did much better with 282 gross orders, but a slew of cancellations led to net order growth of just 76 airplanes.
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Source Fool.com
