Huntington Ingalls Industries (NYSE:HII) & MDA Space (NYSE:MDA) Critical Review

MDA Space (NYSE:MDA) and Huntington Ingalls Industries (NYSE:HII) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Valuation and Earnings

This table compares MDA Space and Huntington Ingalls Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDA Space	$1.87 billion	2.51	$77.65 million	$0.54	53.57
Huntington Ingalls Industries	$12.48 billion	0.88	$605.00 million	$16.78	16.65

Huntington Ingalls Industries has higher revenue and earnings than MDA Space. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than MDA Space, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MDA Space and Huntington Ingalls Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDA Space	5.68%	9.42%	4.20%
Huntington Ingalls Industries	5.01%	12.89%	5.26%

Insider & Institutional Ownership

90.5% of Huntington Ingalls Industries shares are owned by institutional investors. 0.8% of Huntington Ingalls Industries shares 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for MDA Space and Huntington Ingalls Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDA Space	0	3	6	1	2.80
Huntington Ingalls Industries	0	5	5	0	2.50

MDA Space currently has a consensus target price of $50.00, indicating a potential upside of 72.83%. Huntington Ingalls Industries has a consensus target price of $368.88, indicating a potential upside of 32.04%. Given MDA Space’s stronger consensus rating and higher possible upside, research analysts plainly believe MDA Space is more favorable than Huntington Ingalls Industries.

About MDA Space

MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.