Boeing vs. Airbus: Which Jet Giant Offers Investors a Smoother Flight?

As global air travel and defense spending accelerate amid rising geopolitical tensions, investors are turning to aerospace and defense stocks for long-term growth potential. This dynamic environment has created a strong tailwind for aerospace giants Boeing BA and Airbus EADSY, both dominant players with exposure to the commercial and defense sides of the industry. Boeing, headquartered in the United States, operates a diversified business model spanning commercial aircraft, defense systems and space technologies. Its strong ties with the U.S. Department of Defense bolster its long-term growth outlook. Meanwhile, Europe-based Airbus follows a similarly integrated model but with a greater focus on the commercial aircraft segment, while steadily expanding its defense and space operations. With both companies capitalizing on the dual tailwinds of defense modernization and commercial fleet upgrades by airlines, investors are left wondering as to which aviation powerhouse offers a more stable and rewarding flight path. Let’s delve deeper. Financials and Growth Catalysts: How Do Boeing and Airbus Stack Up?Both Boeing and Airbus command dominant positions in the global aerospace sector, but their financial trajectories and growth strategies differ significantly.Boeing has faced multiple financial challenges in recent years, notably tied to its troubled 737 MAX program and a labor strike that disrupted key production lines in the latter half of 2024. On the defense side, however, the company continued securing sizable contracts with the U.S. Department of Defense, spanning fighter jets, surveillance systems and space technologies. This has resulted in a robust defense backlog, helping BA offset the volatility in its commercial segment. Encouragingly, recovery began in late 2024, which gained further momentum in the first quarter of 2025. Impressively, BA’s revenues rose 17.7% year over year, while improved operational efficiency and higher commercial aircraft deliveries contributed to notable bottom-line improvement. Additionally, Boeing reduced its long-term debt, operating cash outflows and free cash outflow compared to the prior-year quarter, signaling strengthening financial health. Looking ahead, the company remains focused on stabilizing its commercial operations, with certification efforts underway for the 777X, 737-7, and 737-10 — pivotal to its ongoing turnaround. Airbus, on the other hand, has maintained more financial stability through the pandemic, thanks to a stronger balance sheet and consistent deliveries in recent times. In 2024, Airbus posted revenue growth of 6% and solid profitability, driven largely by its A320neo family — the world’s most popular single-aisle aircraft. Airbus’ commercial aircraft deliveries outpaced Boeing’s for the fifth consecutive year, reinforcing its market leadership (a trend we observed in the first quarter of 2025 as well). The company’s defense and space division also played a key role in its growth story, supported by Eurofighter Typhoon orders and satellite programs.The company’s balance sheet seems to be stronger than Boeing's, with its 2024-end cash balance worth $22.4 billion exceeding both its current ($7.55 billion) and long-term ($19.40 billion) debt values. Its operating cash flow also improved a solid 8.9% in 2024 from 2023. Looking ahead, Airbus is ramping up its A320neo production, targeting 75 units per month by 2026. In defense, rising NATO spending and geopolitical tensions are expected to boost long-term orders for both companies. Notably, Airbus has an edge in Europe, while Boeing dominates the U.S. defense market.Risks of Investing in Boeing vs. AirbusBoeing carries notable execution and reputational risks, especially from recurring quality control issues in its commercial division, most prominently with the 737 MAX program. Production delays, FAA scrutiny, and certification setbacks for key models like the 737-7, 737-10, and 777X continue to affect investor confidence. Additionally, supply-chain disruptions and labor disputes, such as the 2024 strike, have hindered production efficiency. Airbus, on the other hand, benefits from a more stable commercial aircraft production environment, but it’s not immune to risks. The company faces challenges from supply-chain bottlenecks, particularly in engine deliveries, and rising input costs. As a European company, Airbus is also exposed to foreign exchange fluctuations and geopolitical risks, including sanctions or policy shifts affecting key markets.How Do Zacks Estimates Compare for BA & EADSY?The Zacks Consensus Estimate for Boeing’s 2025 sales implies a year-over-year surge of 25.7%, and the same for its loss suggests an improvement.  Moreover, the stock’s bottom-line estimates have been trending upward over the past 60 days.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for Airbus’ 2025 sales implies a year-over-year surge of 9.6%, while that for its earnings per share suggests an improvement of 19.3%.  Further, the stock’s 2025 and 2026 bottom-line estimates have been trending northward over the past 60 days.Image Source: Zacks Investment ResearchStock Price Performance: BA vs EADSYBA (up 3.1%) has outperformed EADSY (down 4.6%) over the past three months and has done the same in the past year. Shares of BA have surged 6.2%, while those of EADSY have slipped 0.1%.Image Source: Zacks Investment ResearchValuation of EADSY More Attractive Than That of BAEADSY is trading at a forward sales multiple of 1.54X, below BA’s 1.56X.Image Source: Zacks Investment ResearchROIC: BA vs EADSYThe image below reflects that BA’s Return on Invested Capital (ROIC) came in below EADSY’s ROIC. Its negative figure suggests that the American jet giant is not generating enough profit from its investments to cover the cost of its capital.Image Source: Zacks Investment ResearchConclusionBoth Boeing and Airbus stand to benefit from the dual tailwinds of global defense modernization and rising air travel demand. BA offers strong upside potential, especially if it successfully executes its turnaround plan in commercial aviation and leverages its robust U.S. defense backlog. However, ongoing execution risks and a weaker balance sheet could dampen investor enthusiasm. Airbus, on the other hand, provides a more stable and financially sound investment case, backed by consistent deliveries, solid profitability, and a strong foothold in Europe’s defense and commercial markets. With both stocks having a Zacks Rank #3 (Hold) at present, Airbus may appeal more to conservative investors seeking stability and better capital efficiency. In contrast, Boeing suits those with a higher risk appetite, betting on a rebound. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks