United Technologies (NYSE: UTX) and Orbital ATK (NYSE:OA) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, valuation, profitability, institutional ownership and earnings.
Insider & Institutional Ownership
82.4% of United Technologies shares are held by institutional investors. Comparatively, 80.6% of Orbital ATK shares are held by institutional investors. 0.2% of United Technologies shares are held by company insiders. Comparatively, 1.2% of Orbital ATK shares are held by company 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.
This table compares United Technologies and Orbital ATK’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
United Technologies has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Orbital ATK has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500.
United Technologies pays an annual dividend of $2.80 per share and has a dividend yield of 2.2%. Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. United Technologies pays out 42.7% of its earnings in the form of a dividend. Orbital ATK pays out 23.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. United Technologies has increased its dividend for 2 consecutive years and Orbital ATK has increased its dividend for 6 consecutive years.
Valuation and Earnings
This table compares United Technologies and Orbital ATK’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Technologies||$59.84 billion||1.73||$4.55 billion||$6.56||19.75|
|Orbital ATK||$4.76 billion||1.60||$310.00 million||$5.36||24.63|
United Technologies has higher revenue and earnings than Orbital ATK. United Technologies is trading at a lower price-to-earnings ratio than Orbital ATK, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for United Technologies and Orbital ATK, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
United Technologies presently has a consensus target price of $137.82, indicating a potential upside of 6.36%. Orbital ATK has a consensus target price of $122.58, indicating a potential downside of 7.14%. Given United Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe United Technologies is more favorable than Orbital ATK.
United Technologies beats Orbital ATK on 11 of the 17 factors compared between the two stocks.
United Technologies Company Profile
United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company. UTC Climate, Controls & Security segment is engaged in providing heating, ventilating, air conditioning (HVAC) and refrigeration solutions. The Pratt & Whitney segment supplies aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney segment provides fleet management services and aftermarket maintenance, repair and overhaul services. The UTC Aerospace Systems segment provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.
Orbital ATK Company Profile
Orbital ATK, Inc. is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition. The Flight Systems Group segment consists of Launch Vehicles Division, Propulsion Systems Division and Aerospace Structures Division. The Defense Systems Group segment consists of Armament Systems Division, Defense Electronic Division, Missile Products Division and Small Caliber Systems Division. The Space Systems Group consists of Commercial Satellites Division, Government Satellites Division, Space Components Division and Technical Services Division.
Receive News & Ratings for United Technologies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Technologies and related companies with MarketBeat.com's FREE daily email newsletter.