Critical Contrast: Precision Castparts (PCP) versus Its Peers

Precision Castparts (NYSE: PCP) is one of 43 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare Precision Castparts to related businesses based on the strength of its earnings, valuation, dividends, institutional ownership, analyst recommendations, profitability and risk.

Profitability

This table compares Precision Castparts and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Castparts 15.17% 12.16% 6.86%
Precision Castparts Competitors -6.32% 22.49% 3.53%

Earnings & Valuation

This table compares Precision Castparts and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Precision Castparts N/A N/A 24.65
Precision Castparts Competitors $8.89 billion $721.62 million 206.91

Precision Castparts’ competitors have higher revenue and earnings than Precision Castparts. Precision Castparts is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

72.8% of shares of all “Aerospace & Defense” companies are held by institutional investors. 6.7% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Precision Castparts pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Precision Castparts pays out 1.3% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 35.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Precision Castparts and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Castparts 0 0 0 0 N/A
Precision Castparts Competitors 490 2219 2434 92 2.41

As a group, “Aerospace & Defense” companies have a potential upside of 8.90%. Given Precision Castparts’ competitors higher probable upside, analysts plainly believe Precision Castparts has less favorable growth aspects than its competitors.

Summary

Precision Castparts competitors beat Precision Castparts on 7 of the 10 factors compared.

Precision Castparts Company Profile

Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.

Receive News & Ratings for Precision Castparts Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Precision Castparts and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply