Critical Survey: Orbital ATK (OA) versus Its Peers

Orbital ATK (NYSE: OA) is one of 42 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its peers? We will compare Orbital ATK to related businesses based on the strength of its institutional ownership, profitability, risk, dividends, analyst recommendations, earnings and valuation.

Risk & Volatility

Orbital ATK has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, Orbital ATK’s peers have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Orbital ATK and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orbital ATK 0 8 2 0 2.20
Orbital ATK Competitors 487 2198 2413 90 2.41

Orbital ATK currently has a consensus target price of $120.07, suggesting a potential downside of 9.13%. As a group, “Aerospace & Defense” companies have a potential upside of 10.88%. Given Orbital ATK’s peers stronger consensus rating and higher probable upside, analysts clearly believe Orbital ATK has less favorable growth aspects than its peers.

Institutional and Insider Ownership

85.8% of Orbital ATK shares are owned by institutional investors. Comparatively, 72.4% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.2% of Orbital ATK shares are owned by insiders. Comparatively, 6.8% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Orbital ATK pays out 23.8% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.3% and pay out 33.8% of their earnings in the form of a dividend.

Profitability

This table compares Orbital ATK and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orbital ATK 6.62% 17.32% 6.08%
Orbital ATK Competitors -6.82% 22.65% 3.41%

Valuation and Earnings

This table compares Orbital ATK and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Orbital ATK $4.46 billion $293.00 million 24.56
Orbital ATK Competitors $9.12 billion $743.12 million 176.85

Orbital ATK’s peers have higher revenue and earnings than Orbital ATK. Orbital ATK is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Orbital ATK peers beat Orbital ATK on 11 of the 15 factors compared.

Orbital ATK Company Profile

Orbital ATK, Inc. is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition. The Flight Systems Group segment consists of Launch Vehicles Division, Propulsion Systems Division and Aerospace Structures Division. The Defense Systems Group segment consists of Armament Systems Division, Defense Electronic Division, Missile Products Division and Small Caliber Systems Division. The Space Systems Group consists of Commercial Satellites Division, Government Satellites Division, Space Components Division and Technical Services Division.

Receive News & Ratings for Orbital ATK Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Orbital ATK and related companies with MarketBeat.com's FREE daily email newsletter.

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