Astronics Corporation (ATRO) versus Raytheon (RTN) Critical Analysis

Astronics Corporation (NASDAQ: ATRO) and Raytheon (NYSE:RTN) are both aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.

Earnings & Valuation

This table compares Astronics Corporation and Raytheon’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Astronics Corporation $612.68 million 1.61 $86.53 million $1.38 24.93
Raytheon $24.52 billion 2.13 $3.71 billion $7.44 24.22

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

Institutional & Insider Ownership

64.9% of Astronics Corporation shares are held by institutional investors. Comparatively, 73.8% of Raytheon shares are held by institutional investors. 16.5% of Astronics Corporation shares are held by company insiders. Comparatively, 0.2% of Raytheon shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Raytheon pays an annual dividend of $3.19 per share and has a dividend yield of 1.8%. Astronics Corporation does not pay a dividend. Raytheon pays out 42.9% of its earnings in the form of a dividend. Astronics Corporation has increased its dividend for 12 consecutive years.

Risk & Volatility

Astronics Corporation has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Raytheon has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Astronics Corporation and Raytheon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astronics Corporation 0 1 1 0 2.50
Raytheon 0 2 13 0 2.87

Astronics Corporation presently has a consensus price target of $33.00, indicating a potential downside of 4.07%. Raytheon has a consensus price target of $199.67, indicating a potential upside of 10.80%. Given Raytheon’s stronger consensus rating and higher possible upside, analysts plainly believe Raytheon is more favorable than Astronics Corporation.

Profitability

This table compares Astronics Corporation and Raytheon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Astronics Corporation 6.73% 12.12% 6.72%
Raytheon 8.77% 20.98% 7.34%

Summary

Raytheon beats Astronics Corporation on 12 of the 17 factors compared between the two stocks.

About Astronics Corporation

Astronics Corporation is a supplier of products to the aerospace, defense, electronics and semiconductor industries. The Company’s products and services include electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification and automated test systems. The Company operates through two segments: Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. Its product lines include lighting and safety systems, electrical power generation, distribution and motions systems, aircraft structures, avionics products, systems certification and other products. The Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems, as well as training and simulation devices for both commercial and military applications.

About Raytheon

Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity. The Company operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS), and Forcepoint. The IDS segment develops and produces sensors and mission systems. The IIS segment provides a range of technical and professional services to intelligence, defense, federal and commercial customers. The MS segment is a developer, integrator and producer of missile and combat systems. The SAS segment is engaged in the design, development and manufacture of integrated sensor and communication systems for missions. The Forcepoint segment develops cybersecurity products.

What are top analysts saying about Astronics Corporation? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for Astronics Corporation and related companies.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit