Moog (NYSE: MOG) and Orbital ATK (NYSE:OA) are both mid-cap aerospace & defense – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Volatility & Risk

Moog has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Orbital ATK has a beta of 0.43, indicating that its stock price is 57% less volatile than the S&P 500.

Dividends

Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Moog does not pay a dividend. Orbital ATK pays out 23.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations for Moog and Orbital ATK, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moog 0 1 0 0 2.00
Orbital ATK 0 8 2 0 2.20

Moog presently has a consensus target price of $75.00, suggesting a potential downside of 9.40%. Orbital ATK has a consensus target price of $120.07, suggesting a potential downside of 8.97%. Given Orbital ATK’s stronger consensus rating and higher probable upside, analysts plainly believe Orbital ATK is more favorable than Moog.

Valuation & Earnings

This table compares Moog and Orbital ATK’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moog N/A N/A N/A $3.90 21.23
Orbital ATK $4.46 billion 1.71 $293.00 million $5.40 24.43

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

Profitability

This table compares Moog and Orbital ATK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moog 5.95% 13.33% 5.07%
Orbital ATK 6.62% 17.32% 6.08%

Institutional & Insider Ownership

85.8% of Orbital ATK shares are owned by institutional investors. 1.2% of Orbital ATK shares are owned 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.

Summary

Orbital ATK beats Moog on 12 of the 14 factors compared between the two stocks.

Moog Company Profile

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

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.

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