Curtiss-Wright Corporation (CW) & LMI Aerospace (LMIA) Financial Review

LMI Aerospace (NASDAQ: LMIA) and Curtiss-Wright Corporation (NYSE:CW) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Earnings & Valuation

This table compares LMI Aerospace and Curtiss-Wright Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LMI Aerospace N/A N/A N/A ($3.04) -4.60
Curtiss-Wright Corporation $2.16 billion 1.95 $414.23 million $4.41 21.61

Curtiss-Wright Corporation has higher revenue and earnings than LMI Aerospace. LMI Aerospace is trading at a lower price-to-earnings ratio than Curtiss-Wright Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Curtiss-Wright Corporation pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. LMI Aerospace does not pay a dividend. Curtiss-Wright Corporation pays out 11.8% of its earnings in the form of a dividend. LMI Aerospace has increased its dividend for 5 consecutive years.

Profitability

This table compares LMI Aerospace and Curtiss-Wright Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LMI Aerospace -7.72% -31.20% -6.63%
Curtiss-Wright Corporation 9.14% 14.79% 6.42%

Insider and Institutional Ownership

46.9% of LMI Aerospace shares are held by institutional investors. Comparatively, 77.0% of Curtiss-Wright Corporation shares are held by institutional investors. 17.5% of LMI Aerospace shares are held by insiders. Comparatively, 1.1% of Curtiss-Wright Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for LMI Aerospace and Curtiss-Wright Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LMI Aerospace 0 1 0 0 2.00
Curtiss-Wright Corporation 0 3 2 0 2.40

Curtiss-Wright Corporation has a consensus price target of $107.00, indicating a potential upside of 12.30%. Given Curtiss-Wright Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Curtiss-Wright Corporation is more favorable than LMI Aerospace.

Risk & Volatility

LMI Aerospace has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Curtiss-Wright Corporation has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Summary

Curtiss-Wright Corporation beats LMI Aerospace on 11 of the 14 factors compared between the two stocks.

About LMI Aerospace

LMI Aerospace, Inc. is a supplier of structural assemblies, kits and components, and design engineering services to the aerospace and defense markets. The Company operates in two business segments consisting of its Aerostructures segment and its Engineering Services segment. Its Aerostructures segment fabricates, machines, finishes, integrates, assembles and kits machined and formed close tolerance aluminum, specialty alloy and composite components and higher level assemblies for use by the aerospace and defense industries. Its Engineering Services segment provides a range of design, engineering and program management services, supporting aircraft product lifecycles from conceptual design, analysis and certification through production support, fleet support and service life extensions through an engineering solution to original equipment manufacturers (OEMs) and Tier 1 aerospace suppliers, and airline operators.

About Curtiss-Wright Corporation

Curtiss-Wright Corporation is a manufacturing and service company that designs, manufactures, and overhauls precision components and provides engineered products and services to the aerospace, defense, power generation and general industrial markets. The Company operates through three segments: Commercial/Industrial, Defense and Power. The Commercial/Industrial segment’s products include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, valves, and surface technology services. The Defense segment’s products include commercial off-the-shelf (COTS) embedded computing board level modules, turret aiming and stabilization products, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions. The Power segment’s products include a range of hardware, pumps, valves, fastening systems, specialized containment doors, airlock hatches and spent fuel management products.

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