AEVEX (NYSE:AVEX) and Ducommun (NYSE:DCO) Head to Head Comparison

AEVEX (NYSE:AVEX) and Ducommun (NYSE:DCO) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Insider and Institutional Ownership

92.2% of Ducommun shares are owned by institutional investors. 5.0% of Ducommun shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares AEVEX and Ducommun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AEVEX	N/A	N/A	N/A
Ducommun	-3.10%	9.20%	5.07%

Valuation and Earnings

This table compares AEVEX and Ducommun”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AEVEX	N/A	N/A	N/A	$0.32	56.28
Ducommun	$824.73 million	3.36	-$37.35 million	($1.87)	-98.21

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

Analyst Recommendations

This is a summary of current ratings and price targets for AEVEX and Ducommun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AEVEX	1	1	9	0	2.73
Ducommun	0	2	4	1	2.86

AEVEX currently has a consensus price target of $35.62, indicating a potential upside of 97.81%. Ducommun has a consensus price target of $192.60, indicating a potential upside of 4.87%. Given AEVEX’s higher possible upside, analysts clearly believe AEVEX is more favorable than Ducommun.

Summary

Ducommun beats AEVEX on 7 of the 12 factors compared between the two stocks.

About AEVEX

AEVEX Corp. is a holding company which designs, manufactures and provides autonomous systems and navigation technologies. The company’s operating segment includes tactical systems and global solutions. AEVEX Corp. is based in Solana Beach, California.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.