Analyzing Triumph Group (NYSE:TGI) and KLX (KLXI)

Triumph Group (NYSE: TGI) and KLX (NASDAQ:KLXI) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Institutional & Insider Ownership

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98.4% of KLX shares are owned by institutional investors. 2.8% of Triumph Group shares are owned by insiders. Comparatively, 1.8% of KLX shares are owned 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

Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. KLX does not pay a dividend. Triumph Group pays out 2.4% of its earnings in the form of a dividend.

Profitability

This table compares Triumph Group and KLX’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Triumph Group -7.68% 27.59% 5.31%
KLX 3.07% 6.03% 3.61%

Earnings and Valuation

This table compares Triumph Group and KLX’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Triumph Group $3.53 billion 0.37 -$42.95 million $6.54 4.07
KLX $1.74 billion 2.13 $53.40 million $2.75 26.55

KLX has lower revenue, but higher earnings than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than KLX, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Triumph Group has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, KLX has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Triumph Group and KLX, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Triumph Group 2 6 3 0 2.09
KLX 0 2 3 0 2.60

Triumph Group presently has a consensus price target of $32.40, suggesting a potential upside of 21.71%. KLX has a consensus price target of $65.00, suggesting a potential downside of 10.98%. Given Triumph Group’s higher possible upside, analysts clearly believe Triumph Group is more favorable than KLX.

Summary

Triumph Group beats KLX on 8 of the 15 factors compared between the two stocks.

About Triumph Group

Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls, and distributes aero structures, aircraft components, accessories, subassemblies, and systems worldwide. The company operates through four segments: Integrated Systems, Aerospace Structures, Precision Components, and Product Support. It offers aircraft and engine mounted accessory drives, thermal control systems and components, cargo hooks, high lift actuations, cockpit control levers, hydraulic systems and components, landing gear actuation systems, control system valve bodies, landing gear components and assemblies, electronic engine controls, main engine gear box assemblies, exhaust nozzles and ducting, fuel pumps, geared transmissions and drive train components, secondary flight control systems, fuel metering units, and vibration absorbers, as well as offers processing services. The company also offers aircraft wings, flight control surfaces, composite and metal bonding, helicopter cabins, engine nacelles, precision machined parts, stretch-formed leading edges and fuselage skins, empennages, wing spars and stringers, acoustic and thermal insulation systems, and composite ducts and floor panels. In addition, it offers product support services, including component maintenance, repair, and overhaul, as well as postproduction supply chain services for air cycle machines, blades and vanes, APUs, cabin panes, shades, light lenses and other components, speed drives, combustors, engine and airframe accessories, stators, transition ducts, integrated drive generators, sidewalls, light assemblies, remote sensors, overhead bins, thrust reversers, and fuel bladder cells. The company serves the aviation industry, including original equipment manufacturers of commercial, regional, business, and military aircraft and aircraft components, as well as commercial and regional airlines and air cargo carriers. Triumph Group, Inc. was founded in 1993 and is headquartered in Berwyn, Pennsylvania.

About KLX

KLX Inc., together with its subsidiaries, provides aerospace fasteners, consumables, and logistics services worldwide. It operates in two segments, Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The ASG segment distributes bolts, clips, hinges, rings, screws, carbon-faced seals, gaskets, O-rings, and others; chemicals, sealants and adhesives, lubricants, paints, cleaners, and degreasers; Honeywell proprietary parts; and bearings, tooling, electrical components, and clamps. This segment also provides inventory management services and technical support services, as well as operates an e-commerce site that provides customized solutions for customers. It serves commercial airlines; business jet and defense original equipment manufacturers and their subcontractors; airlines; maintenance, repair, and overhaul operators; fixed base operators; and military depots. The ESG segment offers fishing (retrieval) services and equipment; wireline services, including composite frac plug pump downs, pipe recovery and perforation, and evaluation and logging services; pressure control services and rental equipment to assist its clients at the wellsite; and onshore completion services, such as placement and removal of flow control nipples and valves, completion packers, bridge plugs, and composite flow through frac plugs, as well as downhole services tools. This segment also provides down-hole completion and production services; and mobile, customizable workforce accommodations and offices, and associated rental equipment to its customers at their remote field locations. In addition, it offers machine shop services, which consist of CNC lathes, milling machines, spindle lathes, and other machining equipment to rework and rectify damaged equipment, as well as to design/build specialized fit-for-purpose tools. It primarily serves regional or independent oil companies. KLX Inc. is headquartered in Wellington, Florida.

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