Boeing’s (BA) troubles have become Airbus’s (EADSY) opening. As Boeing grapples with production delays, safety crises, and trade headwinds, Airbus is quietly tightening its grip on the skies. In 2024, Airbus delivered 766 aircraft—more than double Boeing’s 348. That’s a lead that’s hard to ignore.
Boeing’s Woes Leave Customers Searching for Options
This year hasn’t done Boeing any favors. The company has faced safety investigations, production halts, and the return of two 737 Max 8 jets by Chinese airlines. Those returns come as U.S.-China trade tensions escalate, putting more strain on Boeing’s China-dependent business. Some airlines, spooked by the headlines and the uncertainty, are starting to rethink their fleet plans. And that’s where Airbus steps in.
Airbus Capitalizes with Fuel-Efficient Aircraft
While Boeing stumbles, Airbus is meeting demand with its A320neo family. Airlines hungry for fuel-efficient options are flocking to Airbus’s order book. The company hasn’t just been delivering planes—it’s been delivering confidence. According to Business Insider, Airbus has kept its innovation engine humming and its deliveries on track, making it the preferred pick for airlines navigating this uncertain era.
Trade Tensions Shift the Market’s Balance
Geopolitics can move markets, and Boeing knows it firsthand. The U.S. slapped tariffs on Chinese goods, and China’s response has clouded Boeing’s future in one of its key markets. Boeing’s exposure to China makes it particularly vulnerable. Airbus, with a more diversified global footprint, could dodge the worst of these trade crosswinds.
Is Airbus a Better Buy than Boeing?
Investors can compare Airbus and Boeing stock using the TipRanks Stocks Comparison tool. Based on the results, Airbus (EADSF) offers a higher potential upside than Boeing (BA). Analysts have set a price target of $206.67 for Airbus, reflecting a 26.86% upside from its current price of $162.92. Meanwhile, Boeing’s price target sits at $198.29, offering just an 11.93% upside from $177.15.
Despite Boeing having a slightly larger market cap of $132.90 billion versus Airbus’ $123.27 billion, Airbus edges ahead with stronger potential gains. Boeing’s negative P/E ratio (-9.83) also stands in stark contrast to Airbus’ 27.44, reflecting Boeing’s ongoing profitability concerns. Airbus, on the other hand, maintains a dividend yield of 1.22%, which Boeing currently lacks.
While both stocks hold a “Moderate Buy” consensus, Airbus’ stronger upside and financial stability could make it the more attractive option for growth-focused investors.
