Better Buy: Boeing vs. Airbus
Boeing (NYSE: BA) and Airbus (OTC: EADSY) have been waging a global battle for commercial air superiority for decades, and shareholders of both companies have benefited. Boeing and Airbus enjoy a global duopoly on large and midsize jets, and an unprecedented, decade-long buying spree by airlines has swelled the order books of both companies.
The COVID-19 pandemic, and the travel slump that has followed, is threatening to upend that success. Airlines that three months ago couldn't get their hands on new planes fast enough are suddenly grounding aircraft and taking an ax to their growth plans. Even after the pandemic is behind us, it's likely to leave a recession in its wake, and airlines seem certain to be more focused on survival than on expansion.
That's going to be a blow for Boeing and Airbus. Both have smaller and underappreciated defense businesses to fall back on, but commercial has dominated the headlines, and the income statement, for years. Investors have taken notice, with shares of both Boeing and Airbus down more than 50% year to date.
Source Fool.com
