Comparing Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) & Woodward (NASDAQ:WWD)

Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) and Woodward (NASDAQ:WWD) are both large-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Insider & Institutional Ownership

0.1% of Rolls-Royce Holdings PLC shares are held by institutional investors. Comparatively, 81.2% of Woodward shares are held by institutional investors. 0.8% of Woodward shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rolls-Royce Holdings PLC and Woodward, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rolls-Royce Holdings PLC	0	2	0	1	2.67
Woodward	0	5	6	0	2.55

Woodward has a consensus price target of $253.11, suggesting a potential upside of 6.58%. Given Woodward’s higher possible upside, analysts plainly believe Woodward is more favorable than Rolls-Royce Holdings PLC.

Dividends

Rolls-Royce Holdings PLC pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. Woodward pays an annual dividend of $1.12 per share and has a dividend yield of 0.5%. Woodward pays out 17.7% of its earnings in the form of a dividend. Woodward has increased its dividend for 5 consecutive years.

Risk & Volatility

Rolls-Royce Holdings PLC has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Woodward has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Earnings and Valuation

This table compares Rolls-Royce Holdings PLC and Woodward”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rolls-Royce Holdings PLC	$24.16 billion	5.38	$3.22 billion	N/A	N/A
Woodward	$3.32 billion	4.28	$372.97 million	$6.32	37.58

Rolls-Royce Holdings PLC has higher revenue and earnings than Woodward.

Profitability

This table compares Rolls-Royce Holdings PLC and Woodward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rolls-Royce Holdings PLC	N/A	N/A	N/A
Woodward	11.32%	16.57%	8.53%

Summary

Woodward beats Rolls-Royce Holdings PLC on 9 of the 16 factors compared between the two stocks.

About Rolls-Royce Holdings PLC

Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.

About Woodward

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.