Which Is a Better Investment, Embraer S.A. or Elbit Systems Ltd. Stock?

Sifting through countless of stocks in the Aerospace & Defense industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Embraer S.A. or Elbit Systems Ltd. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Embraer S.A. and Elbit Systems Ltd. compare based on key financial metrics to determine which better meets your investment needs.

About Embraer S.A. and Elbit Systems Ltd.

Embraer S.A., together with its subsidiaries, designs, develops, manufactures, and sells aircraft and systems in North America, Latin America, the Asia Pacific, Brazil, Europe, and internationally. It operates through Commercial Aviation; Defense & Security; Executive Aviation; Services & Support; and Other segments. The Commercial Aviation segment develops, produces, and sells commercial jets. Its Defense & Security segment develops and produces military aircraft and radars; and is involved in research and development of software and integrated information systems, communications, border monitoring and surveillance, space systems/satellites, and aircraft modernization services and services support, as well as command, control, communications, computer, intelligence, surveillance, and reconnaissance systems. The Executive Aviation segment develops, produces, and sells executive jets. Its Service & Support segment provides field and technical support, flight operations solutions, aircraft modification, materials management, maintenance solutions, and training programs. The Other segment engages in the supply of structural parts and hydraulic systems; production of agricultural crop-spraying aircraft; development and certification of eVTOLs; creation of a maintenance and service network, and air traffic control system for eVTOLs; development and manufacture of electrical propulsion systems; cybersecurity; and software and technical products. It is also involved in leasing used aircraft; pilot, mechanic, and crew training; engineering services; retail trade, maintenance, and repair of computer products; information technology consulting, data processing, application service providers, and internet hosting; and fabrication of aircraft interiors. The company was formerly known as Embraer-Empresa Brasileira de Aeronáutica S.A. and changed its name to Embraer S.A. in November 2010. Embraer S.A. was incorporated in 1969 and is headquartered in São Paulo, Brazil.

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel, North America, the Asia-Pacific, Europe, Latin America, and internationally. The company operates through five segments: Aerospace; C4I and Cyber; Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) and Electronic Warfare (EW); Land; and Elbit Systems of America (ESA). It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; flight academy solutions, electro-optic, night vision, high power energy solutions, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, foreign military sales, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. The company was incorporated in 1966 and is based in Haifa, Israel.

Latest Aerospace & Defense and Embraer S.A., Elbit Systems Ltd. Stock News

As of March 18, 2025, Embraer S.A. had a $10.1 billion market capitalization, compared to the Aerospace & Defense median of $4.5 million. Embraer S.A.’s stock is up 53.7% in 2025, up 11.4% in the previous five trading days and up 135.09% in the past year.

Currently, Embraer S.A.’s price-earnings ratio is 130.8. Embraer S.A.’s trailing 12-month revenue is $5.7 billion with a 5.4% net profit margin. Year-over-year quarterly sales growth most recently was 10.8%. Analysts expect adjusted earnings to reach $1.891 per share for the current fiscal year. Embraer S.A. does not currently pay a dividend.

As of March 18, 2025, Elbit Systems Ltd. had a $18.2 billion market cap, putting it in the 87th percentile of all stocks. Elbit Systems Ltd.’s stock is up 58.8% in 2025, up 15.7% in the previous five trading days and up 105.52% in the past year.

Currently, Elbit Systems Ltd.’s price-earnings ratio is 56.9. Elbit Systems Ltd.’s trailing 12-month revenue is $6.8 billion with a 4.7% net profit margin. Year-over-year quarterly sales growth most recently was 18.7%. Analysts expect adjusted earnings to reach $8.050 per share for the current fiscal year. Elbit Systems Ltd. currently has a 0.5% dividend yield.

How We Compare Embraer S.A. and Elbit Systems Ltd. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Embraer S.A. and Elbit Systems Ltd.’s stock grades to see how they measure up against one another.

Learn more about A+ Investor here!

Sign Up to Receive a Free Special Report Showing How A+ Grades Can Help You Make Smarter Investment Decisions

Embraer S.A. and Elbit Systems Ltd. Stock Value Grades

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Embraer S.A. has a Value Score of 57, which is Average.
Elbit Systems Ltd. has a Value Score of 13, which is Ultra Expensive.

The Value Stock Winner: No Clear Winner

Neither Embraer S.A. or Elbit Systems Ltd. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if Embraer S.A. or Elbit Systems Ltd. is the better investment when it comes to value.

Embraer S.A. and Elbit Systems Ltd.’s Quality Grades

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Embraer S.A. has a Quality Score of 66, which is Strong.
Elbit Systems Ltd. has a Quality Score of 41, which is Average.

The Quality Grade Winner: Embraer S.A.

As you can clearly see from the Quality Grade breakdown above, Embraer S.A. has a better overall quality grade than Elbit Systems Ltd.. For investors who are looking for companies with higher quality than others in the same industry, Embraer S.A. could be a good stock to add to their portfolios. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Embraer S.A. and Elbit Systems Ltd.’s Momentum Grades

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Embraer S.A. has a Momentum Score of 96, which is Very Strong.
Elbit Systems Ltd. has a Momentum Score of 97, which is Very Strong.

The Momentum Grade Winner: It’s a Tie!

Looking at the Momentum Grade breakdown above, both Embraer S.A. and Elbit Systems Ltd. have a grade of A. For those who focus solely on a company’s momentum, further research will need to be conducted into both companies to see if they fit your individual needs as an investor.

Other Embraer S.A. and Elbit Systems Ltd. Grades

In addition to Quality, Momentum and Value, A+ Investor also provides grades for Growth and Estimate Revisions.

Earnings estimate revisions scores take into account the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, surprises beget further surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Embraer S.A. and Elbit Systems Ltd. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Embraer S.A. or Elbit Systems Ltd. Stock?

Overall, Embraer S.A. stock has a Value Score of 57, Momentum Score of 96 and Quality Score of 66.

Elbit Systems Ltd. stock has a Value Score of 13, Momentum Score of 97 and Quality Score of 41.

Comparing Embraer S.A. and Elbit Systems Ltd.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.