Boeing (NYSE:BA) Crowned Winner Once Again


One of the most anticipated question in aerospace investors’ mind, as 2014 comes to a close is; who is the top airplane manufacturer.

Airbus (NASDAQ:EADSY) had taken an easy victory on the traditional rival Boeing (NYSE:BA) last year. Airbus (NASDAQ:EADSY) delivered a total of 1,503 new planes as compared to Boeing (NYSE:BA)’s 1,355. The year before that, Boeing (NYSE:BA) took the crown for delivering orders that were 50% more than Airbus (NASDAQ:EADSY)’s. This year, the market seems to have favored Boeing (NYSE:BA) once again.

Boeing (NYSE:BA) has been able to acquire the following 2014 orders, according to latest reports that were released on Thursday:

  • 957 of the single-aisle 737 planes
  • 263 of the wide-bodied 777
  • 48 of the 787 dreamliners
  • Four 767s
  • Two 747 jumbo jets

This totals up to a remarkable 1,247 orders. After cancellations of 106 orders, the sum of all orders is 1,168 for the year.

When compared with Boeing (NYSE:BA), Airbus (NASDAQ:EADSY) hasn’t been able to perform well at all. The later seems to be finding the former a tough market competitor. Following is its order record for 2014:

  • 994 of single-aisle A319s, A320s and A321s
  • 46 of A330
  • 20 for !350 widebody
  • 20 for megajumbo A380
  • Of this total of 1,080, Airbus (NASDAQ:EADSY) lost 286 orders. Hence, the sum of orders for 2014 is 794 planes.

Boeing (NYSE:BA) seems to have a precedence of nearly 50% over Airbus (NASDAQ:EADSY).

The troubles for Airbus (NASDAQ:EADSY) don’t end there. As Boeing (NYSE:BA) has been able to acquire more orders for its large-body birds, the revenue gap between the two is expected to get wider still.

To be more precise, the A350s are sold for $250 million of reach unit, which means that a single A350 costs more than the price of two A320s put together. However, since the A350 orders were cancelled, Airbus (NASDAQ:EADSY) seems to have shown negative figures for the A350 orders.

The sales of Boeing (NYSE:BA)’s 777 that costs $300 million have enhanced by many folds.

Boeing (NYSE:BA) has been able to achieve better yield as compared to Airbus (NASDAQ:EADSY). As of now, Boeing (NYSE:BA) claims to have completed and delivered 590 of its planes to customers this year. This is quite a remarkable difference from Airbus (NASDAQ:EADSY)’s 493 delivered planes, most of which were smaller cheaper A320 version.

The fiscal 2014 has been a good year for Boeing (NYSE:BA). There is a marked difference between the two rivals in terms of orders of planes received, there delivery as well as the amount of cash collected for each unit.

The next year seems to be tipping in favor of Boeing (NYSE:BA) as well, with more orders pouring in than the ones Airbus (NASDAQ:EADSY) has been able to bag.

Surprisingly though, the Boeing (NYSE:BA) stocks continue to remain cheaper than that of Airbus (NASDAQ:EADSY) stocks. Currently, Boeing (NYSE:BA) share cost 19.5 times earnings. For Airbus (NASDAQ:EADSY), the P/E on shares is 23.4. Boeing (NYSE:BA) also pays 2.2% dividend yield to its shareholders, which is 0.7% more than what Airbus (NASDAQ:EADSY) pays.