American Science & Engineering (NASDAQ: ASEI) and Triumph Group (NYSE:TGI) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

72.9% of American Science & Engineering shares are held by institutional investors. Comparatively, 99.8% of Triumph Group shares are held by institutional investors. 2.4% of American Science & Engineering shares are held by insiders. Comparatively, 2.8% of Triumph Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares American Science & Engineering and Triumph Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Science & Engineering 0.19% 0.15% 0.13%
Triumph Group -1.89% 28.96% 5.74%

Analyst Ratings

This is a summary of current recommendations and price targets for American Science & Engineering and Triumph Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Science & Engineering 0 0 0 0 N/A
Triumph Group 3 6 3 0 2.00

Triumph Group has a consensus target price of $30.64, suggesting a potential upside of 18.06%. Given Triumph Group’s higher possible upside, analysts clearly believe Triumph Group is more favorable than American Science & Engineering.

Volatility and Risk

American Science & Engineering has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Triumph Group has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500.

Valuation & Earnings

This table compares American Science & Engineering and Triumph Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
American Science & Engineering N/A N/A N/A ($0.37) -100.13
Triumph Group $3.42 billion 0.38 $400.81 million ($1.32) -19.66

Triumph Group has higher revenue and earnings than American Science & Engineering. American Science & Engineering is trading at a lower price-to-earnings ratio than Triumph Group, indicating that it is currently the more affordable of the two stocks.

Dividends

American Science & Engineering pays an annual dividend of $2.00 per share and has a dividend yield of 5.4%. Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. American Science & Engineering pays out -540.5% of its earnings in the form of a dividend. Triumph Group pays out -12.1% 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. American Science & Engineering is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Triumph Group beats American Science & Engineering on 8 of the 12 factors compared between the two stocks.

American Science & Engineering Company Profile

American Science and Engineering, Inc. (AS&E) is engaged in developing, manufacturing, marketing and selling X-ray inspection and other detection products. The Company manufactures X-ray inspection products that can be used to inspect parcels, baggage, vehicles, pallets, cargo containers and people. The Company offers its products for homeland security, force protection, public safety and other critical defense and security applications. The Company’s products and services are grouped into approximately five areas: cargo inspection systems, which include OmniView Gantry System, Z Portal System, Sentry Portal System, CarView System and ASE Connect; mobile cargo inspection systems, which include Z Backscatter Van; parcel and personnel screening inspection systems, which include Gemini System, SmartCheck System and MINI Z System; custom products, and service and support.

Triumph Group Company Profile

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.

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