Financial Survey: Huntington Ingalls Industries (HII) & The Competition

Huntington Ingalls Industries (NYSE:HII) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its competitors? We will compare Huntington Ingalls Industries to similar companies based on the strength of its earnings, analyst recommendations, profitability, institutional ownership, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations for Huntington Ingalls Industries and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Ingalls Industries	0	5	4	1	2.60
Huntington Ingalls Industries Competitors	2152	8250	12738	579	2.50

Huntington Ingalls Industries presently has a consensus target price of $369.50, suggesting a potential upside of 21.65%. As a group, “Aerospace & Defense” companies have a potential upside of 28.64%. Given Huntington Ingalls Industries’ competitors higher possible upside, analysts clearly believe Huntington Ingalls Industries has less favorable growth aspects than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Huntington Ingalls Industries	5.42%	13.95%	5.76%
Huntington Ingalls Industries Competitors	-278.26%	-46.47%	-4.05%

Insider & Institutional Ownership

90.5% of Huntington Ingalls Industries shares are owned by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.8% of Huntington Ingalls Industries shares are owned by insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Huntington Ingalls Industries pays an annual dividend of $5.52 per share and has a dividend yield of 1.8%. Huntington Ingalls Industries pays out 29.7% 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 39.3% of their earnings in the form of a dividend. Huntington Ingalls Industries has raised its dividend for 13 consecutive years. Huntington Ingalls Industries is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Huntington Ingalls Industries has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500. Comparatively, Huntington Ingalls Industries’ competitors have a beta of 1.32, meaning that their average share price is 32% more volatile than the S&P 500.

Valuation and Earnings

This table compares Huntington Ingalls Industries and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Huntington Ingalls Industries	$12.48 billion	$605.00 million	16.35
Huntington Ingalls Industries Competitors	$8.44 billion	$569.54 million	24.95

Huntington Ingalls Industries has higher revenue and earnings than its competitors. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Huntington Ingalls Industries beats its competitors on 10 of the 15 factors compared.

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.