Head to Head Analysis: Moog (NYSE:MOG.B) versus AAR (NYSE:AIR)

Moog (NYSE:MOG.B) and AAR (NYSE:AIR) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Moog	6.83%	16.11%	7.15%
AAR	5.46%	12.39%	5.68%

Valuation and Earnings

This table compares Moog and AAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moog	$3.86 billion	2.61	$235.03 million	$8.89	35.79
AAR	$2.78 billion	1.56	$12.50 million	$4.51	24.18

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

Risk and Volatility

Moog has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, AAR has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

8.1% of Moog shares are held by institutional investors. Comparatively, 90.7% of AAR shares are held by institutional investors. 2.4% of Moog shares are held by insiders. Comparatively, 3.6% of AAR shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Moog and AAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moog	0	0	0	0	0.00
AAR	0	2	4	1	2.86

AAR has a consensus price target of $131.20, indicating a potential upside of 20.31%. Given AAR’s stronger consensus rating and higher probable upside, analysts clearly believe AAR is more favorable than Moog.

Summary

Moog beats AAR on 8 of the 15 factors compared between the two stocks.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. 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; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.