Rockwell Collins (NYSE: COL) and Ducommun (NYSE:DCO) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
67.7% of Rockwell Collins shares are held by institutional investors. Comparatively, 82.5% of Ducommun shares are held by institutional investors. 1.1% of Rockwell Collins shares are held by insiders. Comparatively, 8.2% of Ducommun shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Rockwell Collins and Ducommun’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Rockwell Collins and Ducommun, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Rockwell Collins currently has a consensus target price of $130.00, suggesting a potential downside of 2.82%. Ducommun has a consensus target price of $37.00, suggesting a potential upside of 22.56%. Given Ducommun’s stronger consensus rating and higher possible upside, analysts clearly believe Ducommun is more favorable than Rockwell Collins.
Volatility and Risk
Rockwell Collins has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, Ducommun has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
Valuation and Earnings
This table compares Rockwell Collins and Ducommun’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Rockwell Collins||$6.82 billion||3.21||$705.00 million||$6.15||21.75|
|Ducommun||$558.18 million||0.61||$20.07 million||$1.33||22.70|
Rockwell Collins has higher revenue and earnings than Ducommun. Rockwell Collins is trading at a lower price-to-earnings ratio than Ducommun, indicating that it is currently the more affordable of the two stocks.
Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Ducommun does not pay a dividend. Rockwell Collins pays out 21.5% of its earnings in the form of a dividend.
Rockwell Collins beats Ducommun on 9 of the 15 factors compared between the two stocks.
Rockwell Collins Company Profile
Rockwell Collins, Inc. designs, produces, and supports communications and aviation systems worldwide. The company's Interior Systems segment offers commercial aircraft seats; galley structures, food and beverage preparation equipment, and water and waste systems; oxygen and passenger service equipment; cabin lighting systems; and business jet and general aviation interior products. Its Commercial Systems segment provides cabin management systems; data link, frequency, very high frequency, and satellite communications systems; landing, radio navigation, and geophysical sensors, and flight management systems; situational awareness and surveillance systems and products; integrated flight controls; simulation and training systems; maintenance, repair, parts, and after-sales support services, and aftermarket used equipment. The company's Government Systems segment provides communications systems and products; radio navigation products, global positioning system equipment, and multi-mode receivers; avionics systems; precision targeting, electronic warfare, and training systems; simulation and training systems; space wheels; visual system products; maintenance, repair, parts, and after-sales support services, and aftermarket used equipment. Its Information Management Services segment offers voice and data communication services; flight support services; airport communications and information systems; train dispatching and information systems; mission critical security systems; and cabin connectivity solutions. The company serves original equipment manufacturers of commercial air transport, business and regional aircraft, commercial airlines, U.S. Department of Defense, other ministries of defense, other government agencies, defense contractors, the U.S. Federal Aviation Administration, and passenger and freight railroads, as well as airport, critical infrastructure, and business aircraft operators. The company was founded in 1933 and is headquartered in Cedar Rapids, Iowa.
Ducommun Company Profile
Ducommun Incorporated is a global provider of engineering and manufacturing services for various products and failure applications used primarily in the aerospace, defense, industrial, natural resources, medical and other industries. The Company is a solution-based provider, offering a range of value-added products and services in its primary businesses of electronics, structures and integrated solutions. The Company operates through two segments: Electronic Systems (ES) and Structural Systems (SS). The ES has over three product offerings in electronics manufacturing for various applications, including complex cable assemblies and interconnect systems, printed circuit board assemblies, and electronic, electromechanical and mechanical assemblies. The SS segment offers over three product offerings to support a customer base, including commercial aircraft, military fixed-wing aircraft, and military and commercial rotary-wing aircraft.
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