Triumph Group (NYSE: TGI) and General Dynamics (NYSE:GD) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.
Insider and Institutional Ownership
99.8% of Triumph Group shares are owned by institutional investors. Comparatively, 86.8% of General Dynamics shares are owned by institutional investors. 2.8% of Triumph Group shares are owned by company insiders. Comparatively, 6.7% of General Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for Triumph Group and General Dynamics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Triumph Group currently has a consensus target price of $33.11, suggesting a potential upside of 21.06%. General Dynamics has a consensus target price of $218.85, suggesting a potential upside of 8.00%. Given Triumph Group’s higher possible upside, research analysts plainly believe Triumph Group is more favorable than General Dynamics.
Earnings & Valuation
This table compares Triumph Group and General Dynamics’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Triumph Group||$3.53 billion||0.38||-$42.95 million||($2.13)||-12.84|
|General Dynamics||$31.35 billion||1.93||$2.96 billion||$10.03||20.20|
General Dynamics has higher revenue and earnings than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than General Dynamics, indicating that it is currently the more affordable of the two stocks.
This table compares Triumph Group and General Dynamics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Triumph Group has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, General Dynamics has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. General Dynamics pays an annual dividend of $3.36 per share and has a dividend yield of 1.7%. Triumph Group pays out -7.5% of its earnings in the form of a dividend. General Dynamics pays out 33.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Triumph Group has raised its dividend for 19 consecutive years.
General Dynamics beats Triumph Group on 12 of the 17 factors compared between the two stocks.
About Triumph Group
Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.
About General Dynamics
General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair. It operates through four business groups: Aerospace, Combat Systems, Information Systems and Technology, and Marine Systems. Its Aerospace group offers aircraft design; cockpit and cabin systems, and product service and support. Its Combat Systems group offers combat vehicles, weapons systems and munitions. The Information Systems and Technology group provides technologies, products and services in support of various programs. The Marine Systems group is a designer and builder of nuclear-powered submarines, surface combatants and auxiliary and combat-logistics ships.
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