Contrasting MTU Aero Engines (MTUAY) and Its Competitors

MTU Aero Engines (OTCMKTS:MTUAY) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare MTU Aero Engines to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Profitability

This table compares MTU Aero Engines and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MTU Aero Engines	9.87%	22.52%	7.75%
MTU Aero Engines Competitors	-278.66%	-46.60%	-4.00%

Volatility and Risk

MTU Aero Engines has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, MTU Aero Engines’ peers have a beta of 1.31, meaning that their average stock price is 31% more volatile than the S&P 500.

Dividends

MTU Aero Engines pays an annual dividend of $1.49 per share and has a dividend yield of 0.8%. MTU Aero Engines pays out 15.0% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 38.5% of their earnings in the form of a dividend.

Insider & Institutional Ownership

0.0% of MTU Aero Engines shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 11.8% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares MTU Aero Engines and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MTU Aero Engines	$9.91 billion	$1.15 billion	19.39
MTU Aero Engines Competitors	$8.42 billion	$569.54 million	23.89

MTU Aero Engines has higher revenue and earnings than its peers. MTU Aero Engines is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for MTU Aero Engines and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MTU Aero Engines	3	2	4	1	2.30
MTU Aero Engines Competitors	2156	8257	12757	580	2.50

As a group, “Aerospace & Defense” companies have a potential upside of 32.59%. Given MTU Aero Engines’ peers stronger consensus rating and higher probable upside, analysts plainly believe MTU Aero Engines has less favorable growth aspects than its peers.

Summary

MTU Aero Engines peers beat MTU Aero Engines on 8 of the 15 factors compared.

MTU Aero Engines Company Profile

MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.