LMI Aerospace (NASDAQ: LMIA) and Ducommun (NYSE:DCO) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.
Volatility and Risk
LMI Aerospace has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500.
46.9% of LMI Aerospace shares are held by institutional investors. Comparatively, 79.9% of Ducommun shares are held by institutional investors. 17.5% of LMI Aerospace shares are held by company insiders. Comparatively, 8.2% of Ducommun shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares LMI Aerospace and Ducommun’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for LMI Aerospace and Ducommun, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ducommun has a consensus target price of $37.00, indicating a potential upside of 29.05%. Given Ducommun’s stronger consensus rating and higher possible upside, analysts clearly believe Ducommun is more favorable than LMI Aerospace.
Earnings and Valuation
This table compares LMI Aerospace and Ducommun’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ducommun||$552.29 million||0.59||$51.72 million||$1.20||23.89|
Ducommun has higher revenue and earnings than LMI Aerospace. LMI Aerospace is trading at a lower price-to-earnings ratio than Ducommun, indicating that it is currently the more affordable of the two stocks.
Ducommun beats LMI Aerospace on 9 of the 11 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.
Ducommun Incorporated is a global provider of engineering and manufacturing services for various products and failure applications used primarily in the aerospace, defense, industrial, natural resources, medical and other industries. The Company is a solution-based provider, offering a range of value-added products and services in its primary businesses of electronics, structures and integrated solutions. The Company operates through two segments: Electronic Systems (ES) and Structural Systems (SS). The ES has over three product offerings in electronics manufacturing for various applications, including complex cable assemblies and interconnect systems, printed circuit board assemblies, and electronic, electromechanical and mechanical assemblies. The SS segment offers over three product offerings to support a customer base, including commercial aircraft, military fixed-wing aircraft, and military and commercial rotary-wing aircraft.
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