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CAE vs GE

CAE
CAE Inc.
BEARISH
Price
$25.32
Market Cap
$8.15B
Sector
Industrials
AI Confidence
85%
GE
GE Aerospace
NEUTRAL
Price
$303.60
Market Cap
$320.24B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
CAE
29.44
GE
37.71
Forward P/E
CAE
27.71
GE
35.2
P/B Ratio
CAE
2.15
GE
17.05
P/S Ratio
CAE
1.68
GE
6.98
EV/EBITDA
CAE
11.23
GE
30.66

Profitability

Gross Margin
CAE
28.39%
GE
31.5%
Operating Margin
CAE
13.62%
GE
19.55%
Profit Margin
CAE
7.73%
GE
18.98%
ROE
CAE
7.72%
GE
44.69%
ROA
CAE
3.74%
GE
4.68%

Growth

Revenue Growth
CAE
2.3%
GE
17.6%
Earnings Growth
CAE
-35.9%
GE
37.4%

Financial Health

Debt/Equity
CAE
0.62
GE
1.14
Current Ratio
CAE
0.91
GE
1.04
Quick Ratio
CAE
0.65
GE
0.69

Dividends

Dividend Yield
CAE
--
GE
0.62%
Payout Ratio
CAE
0.0%
GE
17.89%

AI Verdict

CAE BEARISH

CAE presents a concerning valuation profile, trading at $25.32 despite a Graham Number of $15.09 and an Intrinsic Value of $6.02. While the Piotroski F-Score of 4/9 indicates stable health, this is offset by critical liquidity risks evidenced by a Current Ratio of 0.91 and a Quick Ratio of 0.65. The company is experiencing a severe earnings contraction of -35.9% YoY, which is fundamentally incompatible with its current P/E of 29.44. Technical trends are entirely bearish (0/100), suggesting a lack of market confidence despite optimistic analyst price targets.

Strengths
Manageable Debt/Equity ratio of 0.62
Healthy Operating Margin of 13.62%
Strong historical track record of beating EPS estimates
Risks
Severe earnings decline (-35.9% YoY)
Liquidity risk with Current Ratio below 1.0
Significant overvaluation relative to Graham and Intrinsic value models
GE NEUTRAL

GE Aerospace exhibits a stark divergence between its operational growth and its deterministic financial health, highlighted by a weak Piotroski F-Score of 3/9. While the company delivers impressive earnings growth (37.4% YoY) and high ROE (44.69%), it trades at a significant premium to both its Graham Number ($56.79) and Intrinsic Value ($237.48). The valuation is stretched with a PEG ratio of 5.24, suggesting that current price levels have priced in aggressive future success. Despite strong analyst 'strong_buy' recommendations, the combination of poor deterministic health and bearish insider activity warrants a cautious approach.

Strengths
Exceptional Return on Equity (ROE) of 44.69%
Strong earnings track record with consistent beats and high average surprise (25.12%)
Robust revenue growth (17.6% YoY) and earnings growth (37.4% YoY)
Risks
Weak deterministic health indicated by a Piotroski F-Score of 3/9
Extreme valuation metrics, specifically a PEG ratio of 5.24 and P/B of 17.05
Tight liquidity position with a Quick Ratio of 0.69

Compare Another Pair

CAE vs GE: Head-to-Head Comparison

This page compares CAE Inc. (CAE) and GE Aerospace (GE) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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