BAE Systems (OTCMKTS:BAESY) and Japan Tobacco (OTCMKTS:JAPAY) Head-To-Head Review

BAE Systems (OTCMKTS:BAESYGet Free Report) and Japan Tobacco (OTCMKTS:JAPAYGet Free Report) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.

Volatility & Risk

BAE Systems has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Japan Tobacco has a beta of 0.41, meaning that its share price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for BAE Systems and Japan Tobacco, as reported by

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BAE Systems 1 1 3 0 2.40
Japan Tobacco 0 1 0 0 2.00

BAE Systems currently has a consensus target price of $475.00, suggesting a potential upside of 597.61%. Japan Tobacco has a consensus target price of $10.00, suggesting a potential downside of 25.87%. Given BAE Systems’ stronger consensus rating and higher possible upside, equities analysts clearly believe BAE Systems is more favorable than Japan Tobacco.


BAE Systems pays an annual dividend of $1.81 per share and has a dividend yield of 2.7%. Japan Tobacco pays an annual dividend of $0.45 per share and has a dividend yield of 3.3%. Japan Tobacco pays out 45.9% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares BAE Systems and Japan Tobacco’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BAE Systems $24.98 billion 2.06 $2.31 billion N/A N/A
Japan Tobacco $20.26 billion N/A $3.42 billion $0.98 13.77

Japan Tobacco has lower revenue, but higher earnings than BAE Systems.

Insider & Institutional Ownership

0.2% of BAE Systems shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.


This table compares BAE Systems and Japan Tobacco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BAE Systems N/A N/A N/A
Japan Tobacco 17.17% 12.48% 6.96%


BAE Systems beats Japan Tobacco on 7 of the 12 factors compared between the two stocks.

About BAE Systems

(Get Free Report)

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.

About Japan Tobacco

(Get Free Report)

Japan Tobacco Inc., a tobacco company, manufactures and sells tobacco products, pharmaceuticals, and processed foods in Japan and internationally. The company operates through three segments: Tobacco Business, Pharmaceutical, and Processed Food. It offers tobacco products, such as cigarettes, heat-not-burn tobacco products, E-vapor products, fine cut tobacco products, cigars, pipes, smokeless tobacco products, and hookah and kretek products. The company also provides reduced-risk products, including infused tobacco capsules and heated tobacco sticks. In addition, it researches and develops, manufactures, and sells prescription drugs for the therapeutic areas, such as cardiovascular, kidney and metabolism, immunity/inflammation, and central nervous system. Further, the company provides frozen and room-temperature products, such as frozen udon noodles, packed rice, and frozen okonomiyaki; bakery products; and seasonings, including yeast extracts, assembled, kelp and bonito extracts, and oyster sauces. It offers its products under the Winston, Camel, MEVIUS, and LD brands. Japan Tobacco Inc. was incorporated in 1985 and is headquartered in Tokyo, Japan.

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