RE: Air Canada stock is flying"Embraer shares seem to be doing much better than the shares of Bombardier in spite of the fact that Bombardier quarterly revenue is approximately equal to Embraer annual revenue. However, Embraer has a rosier outlook than Bombardier"
Saying it doesn't make it so. Most of us see flowers where we want to see them and weeds where we want to see those. As someone said, "Beauty is in the eye of the beholder".
Views such as these - however emphatically stated - remain just one person's, highly subjective, perspective. Most of us hear (or see) what we want to see and disregard the rest.
You suggest Embraer is a betterr choice than Bombardier, but fail to offer much evidence to support that contention. I've followed Embraer closely for many years. The company makes some reasonably good aircraft. It has a distinct advantage in the area of labour costs, but in my view, it does not come close to Bombardier in terms of innovative capacity.
Although Embraer has a military division building Trucano trainers and even some (largely outdated) fighter aircraft it hasn't seen much success selling these to other countries - outside of a small contract to Greece.
Embraer has made a good start on entering the business jet market but sales have fallen dramatically in face of the recent downturn.
One big problem Embraer faces is something called the "Brazilian Factor", which refers to the risk anyone takes in doing business with that country since its economy, and its currency are prone to huge swings.
How Embraer compares to Bombardier in terms of size depends on what you measure - assets, revenues, earnings, number of deliveries etc...In some respects Bombardier is several times larger than Embraer.
Investors owning Embraer have to concern themselves about currency risks. If the Brazilian economy goes for a loop and their currency called the Real is devalued, you could do reasonably well with the company and still lose ground on the currency. And although the Brazilian economy had been doing fairly well prior to the downturn, it has suffered along with many countries.
Currency and the economy are formidable risks since this is a country which has long been rife with corruption and political graft. And of course, there's the fact that most news on the company is in Portuguese, making it somewhat more difficult to follow.
In addition, as a purer play on aerospace fortunes, it seems reasonable to expect Embraer's share price to swing more to the extremes than Bombardier since Bombardier has its rail transportation business to help moderate those swings.
Outside of business jets, Bombardier has more, and better products. Even in business jets, Bombardier's all-composite Learjet 85 has greater range, speed, and efficiency than anything Embraer has to offer.
By all means if you like that company's prospects better you should invest in it rather than Bombardier.
One last minor consideration, if you invest in Embraer there aren't many active discussion boards for that company...