Head-To-Head Analysis: L-3 Communications Holdings (LLL) vs. Moog (MOG.A)

L-3 Communications Holdings (NYSE: LLL) and Moog (NYSE:MOG.A) are both large-cap aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Profitability

This table compares L-3 Communications Holdings and Moog’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
L-3 Communications Holdings 5.22% 14.00% 5.59%
Moog 5.50% 14.06% 4.83%

Dividends

L-3 Communications Holdings pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. Moog does not pay a dividend. L-3 Communications Holdings pays out 41.3% of its earnings in the form of a dividend. Moog has increased its dividend for 13 consecutive years.

Volatility and Risk

L-3 Communications Holdings has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Moog has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Insider and Institutional Ownership

78.9% of L-3 Communications Holdings shares are owned by institutional investors. Comparatively, 82.8% of Moog shares are owned by institutional investors. 2.9% of L-3 Communications Holdings shares are owned by insiders. Comparatively, 1.6% of Moog shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares L-3 Communications Holdings and Moog’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
L-3 Communications Holdings $10.51 billion 1.39 $710.00 million $7.27 25.66
Moog $2.41 billion 1.27 $126.74 million $3.75 22.88

L-3 Communications Holdings has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than L-3 Communications Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for L-3 Communications Holdings and Moog, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
L-3 Communications Holdings 0 5 4 1 2.60
Moog 0 2 0 0 2.00

L-3 Communications Holdings currently has a consensus target price of $193.89, indicating a potential upside of 3.95%. Moog has a consensus target price of $75.00, indicating a potential downside of 12.59%. Given L-3 Communications Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe L-3 Communications Holdings is more favorable than Moog.

Summary

L-3 Communications Holdings beats Moog on 11 of the 18 factors compared between the two stocks.

About L-3 Communications Holdings

L3 Technologies, Inc., formerly L-3 Communications Holdings, Inc., is a prime contractor in Intelligence, Surveillance and Reconnaissance (ISR) systems, aircraft sustainment, simulation and training, night vision and image intensification equipment and security and detection systems. The Company provides a broad range of communication and electronic systems and products used on military and commercial platforms. It operates through four segments: Electronic Systems, Aerospace Systems, Communication Systems and Sensor Systems. Electronic Systems provides a broad range of products and services for military and commercial customers in several niche markets across several business areas. Aerospace Systems delivers integrated solutions and provides engineering, modernization, upgrade, sustainment, and maintenance and logistics support. Communication Systems delivers products and services for the global communications market. Sensor Systems provides diverse sensor technologies.

About Moog

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

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