Analyzing MTU Aero Engines (MTUAY) & Herman Miller (MLHR)

MTU Aero Engines (OTCMKTS: MTUAY) and Herman Miller (NASDAQ:MLHR) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares MTU Aero Engines and Herman Miller’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MTU Aero Engines 7.54% 24.93% 7.66%
Herman Miller 5.55% 22.26% 10.21%



Insider and Institutional Ownership

82.7% of Herman Miller shares are held by institutional investors. 1.9% of Herman Miller shares are held by company 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.

Valuation and Earnings

This table compares MTU Aero Engines and Herman Miller’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MTU Aero Engines $5.69 billion 1.56 $431.29 million N/A N/A
Herman Miller $2.28 billion 0.85 $123.90 million $2.16 15.00

MTU Aero Engines has higher revenue and earnings than Herman Miller.

Risk and Volatility

MTU Aero Engines has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500. Comparatively, Herman Miller has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Dividends

MTU Aero Engines pays an annual dividend of $0.99 per share and has a dividend yield of 1.2%. Herman Miller pays an annual dividend of $0.72 per share and has a dividend yield of 2.2%. Herman Miller pays out 33.3% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for MTU Aero Engines and Herman Miller, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MTU Aero Engines 1 1 3 0 2.40
Herman Miller 0 0 2 0 3.00

Herman Miller has a consensus price target of $40.50, indicating a potential upside of 25.00%. Given Herman Miller’s stronger consensus rating and higher possible upside, analysts plainly believe Herman Miller is more favorable than MTU Aero Engines.

Summary

MTU Aero Engines beats Herman Miller on 8 of the 15 factors compared between the two stocks.

MTU Aero Engines Company Profile

MTU Aero Engines AG, together with its subsidiaries, designs, develops, manufactures, markets, and supports commercial and military engines, modules, and components in Germany, Europe, North America, Asia, and internationally. It operates through two segments, Original Equipment Manufacturing Business; and Maintenance, Repair and Overhaul Business. The company develops, manufactures, assembles, and delivers commercial engines, including long haul airliners, short- and medium-haul aircrafts, business jets, and helicopters, as well as commercial aircraft engines, such as wide body, narrow body, and regional jets; military engines, such as fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls military engines, aircraft engines, and industrial gas turbines, as well as provides engine modules and parts repair, and related services. In addition, the company offers customized solutions from its range of services under MTU Aero Solutions brand; designs, develops, manufactures, and markets various brush seals; and provides training programs in non-destructive testing. Further, it provides on-site, engine lease, fleet management, accessory repair, asset and material management, and customer support services; and technical support, logistic support, and facilities services, as well as accessories. 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.

Herman Miller Company Profile

Herman Miller, Inc. is engaged in the research, design, manufacture, sale and distribution of office furniture systems, seating products, home furnishings and related services, among others. The Company’s segments include North American Furniture Solutions, which includes the design, manufacture and sale of furniture products for work-related settings, including office, education and healthcare environments, across the United States and Canada; EMEA, Latin America, and Asia Pacific (ELA) Furniture Solutions, which includes the operations associated with the design, manufacture, and sale of furniture products, primarily for work-related settings, in the Europe, Middle East and Africa (EMEA), Latin America and Asia-Pacific geographic regions, among others; Specialty segment, which includes the design, manufacture and sale of furniture products and textiles, and Consumer segment, which includes the sale of modern design furnishings and accessories to third-party retail distributors.

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