Airbus Leaves Boeing in the Dust with Dominant Valuation
The aerospace industry has seen two major players vying for dominance: Airbus and Boeing. According to recent data, Airbus is the clear winner in terms of valuation, with a price-to-earnings ratio (P/E) of 27.3x compared to Boeing's 79.3x.
Boeing's negative earnings before interest, taxes, depreciation, and amortization (EBITDA) paints a concerning picture for the company. The market is pricing in a recovery that has not materialized, making its valuation multiples meaningless.
Airbus, on the other hand, boasts a consistent track record of profitability, with a net income of $6.13B in 2025 and a net margin of 7.1%. Boeing, by contrast, just emerged from a prolonged loss streak, with a loss of -$11.88B in 2024.
Boeing's debt-to-equity ratio is alarming at 793.6%, while Airbus's ratio is manageable at 55.2%. The free cash flow yield for Boeing is -0.1% compared to Airbus's 2.9%. These figures indicate that Boeing is burning cash and servicing a massive amount of debt.