United Technologies Corporation (NYSE:UTX) and Hexcel Corporation (HXL) Financial Survey
United Technologies Corporation (NYSE: UTX) and Hexcel Corporation (NYSE:HXL) are both mid-cap multi-sector conglomerates companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitabiliy, valuation and risk.
Volatility & Risk
United Technologies Corporation has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, Hexcel Corporation has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.
Earnings & Valuation
This table compares United Technologies Corporation and Hexcel Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|United Technologies Corporation||$58.11 billion||1.62||$10.15 billion||$6.56||18.02|
|Hexcel Corporation||$1.95 billion||2.45||$442.00 million||$2.73||19.50|
United Technologies Corporation has higher revenue and earnings than Hexcel Corporation. United Technologies Corporation is trading at a lower price-to-earnings ratio than Hexcel Corporation, indicating that it is currently the more affordable of the two stocks.
United Technologies Corporation pays an annual dividend of $2.64 per share and has a dividend yield of 2.2%. Hexcel Corporation pays an annual dividend of $0.50 per share and has a dividend yield of 0.9%. United Technologies Corporation pays out 40.2% of its earnings in the form of a dividend. Hexcel Corporation pays out 18.3% 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. United Technologies Corporation has increased its dividend for 5 consecutive years. United Technologies Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares United Technologies Corporation and Hexcel Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|United Technologies Corporation||9.15%||18.07%||5.91%|
Institutional & Insider Ownership
78.8% of United Technologies Corporation shares are held by institutional investors. 0.2% of United Technologies Corporation shares are held by company insiders. Comparatively, 2.1% of Hexcel Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a breakdown of current ratings and recommmendations for United Technologies Corporation and Hexcel Corporation, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|United Technologies Corporation||0||10||5||0||2.33|
United Technologies Corporation currently has a consensus price target of $122.93, suggesting a potential upside of 4.01%. Hexcel Corporation has a consensus price target of $56.75, suggesting a potential upside of 6.61%. Given Hexcel Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Hexcel Corporation is more favorable than United Technologies Corporation.
Hexcel Corporation beats United Technologies Corporation on 9 of the 16 factors compared between the two stocks.
About United Technologies Corporation
United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company. UTC Climate, Controls & Security segment is engaged in providing heating, ventilating, air conditioning (HVAC) and refrigeration solutions. The Pratt & Whitney segment supplies aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney segment provides fleet management services and aftermarket maintenance, repair and overhaul services. The UTC Aerospace Systems segment provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.
About Hexcel Corporation
Hexcel Corporation is a composites company. The Company develops, manufactures, and markets lightweight, structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered honeycomb and structures, for use in Commercial Aerospace, Space and Defense and Industrial markets. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment consists of its carbon fiber, specialty reinforcements, resins, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines. The Engineered Products segment consists of lightweight structures, molded components, engineered core and honeycomb products with added functionality. Its products are used in a range of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, and recreational products.
Receive News & Stock Ratings for United Technologies Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for United Technologies Corporation and related stocks with our FREE daily email newsletter.