Hexcel (NYSE: HXL) and Mtu Aero Engines A (OTCMKTS:MTUAY) are both mid-cap aerospace companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Risk and Volatility
Hexcel has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Mtu Aero Engines A has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.
Institutional and Insider Ownership
95.7% of Hexcel shares are owned by institutional investors. 2.1% of Hexcel shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Hexcel and Mtu Aero Engines A’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hexcel||$1.97 billion||2.93||$284.00 million||$3.09||20.82|
|Mtu Aero Engines A||$5.69 billion||1.51||$431.29 million||$4.13||19.94|
Mtu Aero Engines A has higher revenue and earnings than Hexcel. Mtu Aero Engines A is trading at a lower price-to-earnings ratio than Hexcel, indicating that it is currently the more affordable of the two stocks.
This table compares Hexcel and Mtu Aero Engines A’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mtu Aero Engines A||7.54%||24.93%||7.66%|
This is a breakdown of current recommendations for Hexcel and Mtu Aero Engines A, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mtu Aero Engines A||0||1||3||0||2.75|
Hexcel presently has a consensus price target of $64.78, suggesting a potential upside of 0.68%. Given Hexcel’s higher possible upside, research analysts plainly believe Hexcel is more favorable than Mtu Aero Engines A.
Hexcel pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. Mtu Aero Engines A pays an annual dividend of $0.71 per share and has a dividend yield of 0.9%. Hexcel pays out 16.2% of its earnings in the form of a dividend. Mtu Aero Engines A pays out 17.2% 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. Mtu Aero Engines A has increased its dividend for 2 consecutive years. Mtu Aero Engines A is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Hexcel beats Mtu Aero Engines A on 10 of the 17 factors compared between the two stocks.
Hexcel Company Profile
Hexcel Corporation is a composites company. The Company develops, manufactures, and markets lightweight, structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered honeycomb and structures, for use in Commercial Aerospace, Space and Defense and Industrial markets. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment consists of its carbon fiber, specialty reinforcements, resins, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines. The Engineered Products segment consists of lightweight structures, molded components, engineered core and honeycomb products with added functionality. Its products are used in a range of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, and recreational products.
Mtu Aero Engines A Company Profile
MTU Aero Engines AG, together with its subsidiaries, designs, develops, manufactures, markets, and supports commercial and military engines, modules, and components in Germany, Europe, North America, Asia, and internationally. It operates through two segments, Original Equipment Manufacturing Business; and Maintenance, Repair and Overhaul Business. The company develops, manufactures, assembles, and delivers commercial engines, including long haul airliners, short and medium haul aircraft, business jets, and helicopters; military engines, such as fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines, and industrial gas turbines, as well as offers engine modules and parts repair services; and engine leasing and fleet management services. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.
Receive News & Ratings for Hexcel Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hexcel and related companies with MarketBeat.com's FREE daily email newsletter.