Contrasting Rockwell Collins (COL) & Its Rivals

Rockwell Collins (NYSE: COL) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its peers? We will compare Rockwell Collins to related companies based on the strength of its institutional ownership, profitability, risk, valuation, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

77.7% of Rockwell Collins shares are held by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.5% of Rockwell Collins shares are held by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Rockwell Collins and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Collins 1 16 3 0 2.10
Rockwell Collins Competitors 470 2071 2303 81 2.41

Rockwell Collins presently has a consensus target price of $122.65, indicating a potential downside of 7.52%. As a group, “Aerospace & Defense” companies have a potential upside of 2.76%. Given Rockwell Collins’ peers stronger consensus rating and higher possible upside, analysts plainly believe Rockwell Collins has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Rockwell Collins and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rockwell Collins $6.07 billion $1.35 billion 26.16
Rockwell Collins Competitors $8.56 billion $1.20 billion 81.57

Rockwell Collins’ peers have higher revenue, but lower earnings than Rockwell Collins. Rockwell Collins is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Rockwell Collins and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rockwell Collins 11.52% 26.20% 7.76%
Rockwell Collins Competitors -5.04% 25.16% 3.96%

Dividends

Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Rockwell Collins pays out 26.0% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.5% and pay out 36.1% of their earnings in the form of a dividend. Rockwell Collins has raised its dividend for 2 consecutive years.

Risk & Volatility

Rockwell Collins has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Rockwell Collins’ peers have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.

Summary

Rockwell Collins peers beat Rockwell Collins on 9 of the 15 factors compared.

Rockwell Collins Company Profile

Rockwell Collins, Inc. designs, produces and supports communications and aviation systems for commercial and military customers. The Company provides information management services through voice and data communication networks and solutions across the world. The Company operates through three segments: Commercial Systems, Government Systems and Information Management Services. The Commercial Systems segment supplies aviation electronics systems, products and services to customers located throughout the world. The Government Systems segment provides a range of electronic products, systems and services to customers including the United States Department of Defense, various ministries of defense, other government agencies and defense contractors around the world. The Information Management Services segment provides communications services, systems integration and security solutions across the aviation, airport, rail and nuclear security markets.

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