DigitalGlobe (DGI) & Rockwell Collins (COL) Head-To-Head Analysis

DigitalGlobe (NYSE: DGI) and Rockwell Collins (NYSE:COL) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Insider and Institutional Ownership

95.9% of DigitalGlobe shares are held by institutional investors. Comparatively, 78.0% of Rockwell Collins shares are held by institutional investors. 2.3% of DigitalGlobe shares are held by company insiders. Comparatively, 1.5% of Rockwell Collins shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares DigitalGlobe and Rockwell Collins’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
DigitalGlobe $725.40 million 0.00 $26.50 million $0.02 N/A
Rockwell Collins $6.82 billion 3.24 $705.00 million $4.78 28.44

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

Dividends

Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. DigitalGlobe does not pay a dividend. Rockwell Collins pays out 27.6% of its earnings in the form of a dividend. DigitalGlobe has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and target prices for DigitalGlobe and Rockwell Collins, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DigitalGlobe 0 3 1 0 2.25
Rockwell Collins 1 15 3 0 2.11

DigitalGlobe presently has a consensus price target of $36.38, indicating a potential upside of Infinity. Rockwell Collins has a consensus price target of $124.18, indicating a potential downside of 8.65%. Given DigitalGlobe’s stronger consensus rating and higher probable upside, equities analysts plainly believe DigitalGlobe is more favorable than Rockwell Collins.

Profitability

This table compares DigitalGlobe and Rockwell Collins’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DigitalGlobe 0.64% 2.40% 0.97%
Rockwell Collins 10.33% 22.00% 6.90%

Volatility and Risk

DigitalGlobe has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Rockwell Collins has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

About DigitalGlobe

DigitalGlobe, Inc. is a provider of Earth imagery, data and analysis. The Company’s imagery solutions and other services support a range of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The Company’s imagery solutions and other services are sourced from its own satellite constellation and third-party providers. The Company sells its products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners and direct enterprise sales to its United States Government and Diversified Commercial customer groups. The Company offers products consisting of imagery from its constellation of satellites, and provides geospatial products and services. The Company processes its imagery to varying levels according to its customers’ specifications and delivers its products using the distribution method.

About Rockwell Collins

Rockwell Collins, Inc. designs, produces and supports communications and aviation systems for commercial and military customers. The Company provides information management services through voice and data communication networks and solutions across the world. The Company operates through three segments: Commercial Systems, Government Systems and Information Management Services. The Commercial Systems segment supplies aviation electronics systems, products and services to customers located throughout the world. The Government Systems segment provides a range of electronic products, systems and services to customers including the United States Department of Defense, various ministries of defense, other government agencies and defense contractors around the world. The Information Management Services segment provides communications services, systems integration and security solutions across the aviation, airport, rail and nuclear security markets.

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