Moog (NYSE: MOG.A) and L-3 Communications Holdings (NYSE:LLL) are both mid-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, dividends, earnings, institutional ownership and valuation.
L-3 Communications Holdings pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. Moog does not pay a dividend. L-3 Communications Holdings pays out 41.3% of its earnings in the form of a dividend. L-3 Communications Holdings has raised its dividend for 13 consecutive years.
This table compares Moog and L-3 Communications Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|L-3 Communications Holdings||5.22%||14.00%||5.59%|
Earnings & Valuation
This table compares Moog and L-3 Communications Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Moog||$2.50 billion||1.18||$141.28 million||$3.90||21.05|
|L-3 Communications Holdings||$10.51 billion||1.37||$710.00 million||$7.27||25.34|
L-3 Communications Holdings has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than L-3 Communications Holdings, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
82.8% of Moog shares are held by institutional investors. Comparatively, 79.9% of L-3 Communications Holdings shares are held by institutional investors. 2.4% of Moog shares are held by company insiders. Comparatively, 2.9% of L-3 Communications Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Moog and L-3 Communications Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|L-3 Communications Holdings||0||5||4||1||2.60|
Moog currently has a consensus target price of $81.00, indicating a potential downside of 1.32%. L-3 Communications Holdings has a consensus target price of $193.89, indicating a potential upside of 5.25%. Given L-3 Communications Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe L-3 Communications Holdings is more favorable than Moog.
Risk and Volatility
Moog has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, L-3 Communications Holdings has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
L-3 Communications Holdings beats Moog on 14 of the 18 factors compared between the two stocks.
Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.
About L-3 Communications Holdings
L3 Technologies, Inc., formerly L-3 Communications Holdings, Inc., is a prime contractor in Intelligence, Surveillance and Reconnaissance (ISR) systems, aircraft sustainment, simulation and training, night vision and image intensification equipment and security and detection systems. The Company provides a broad range of communication and electronic systems and products used on military and commercial platforms. It operates through four segments: Electronic Systems, Aerospace Systems, Communication Systems and Sensor Systems. Electronic Systems provides a broad range of products and services for military and commercial customers in several niche markets across several business areas. Aerospace Systems delivers integrated solutions and provides engineering, modernization, upgrade, sustainment, and maintenance and logistics support. Communication Systems delivers products and services for the global communications market. Sensor Systems provides diverse sensor technologies.
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