Ducommun (NYSE: DCO) and Astronics (NASDAQ:ATRO) are both small-cap aerospace companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Institutional & Insider Ownership
82.2% of Ducommun shares are held by institutional investors. Comparatively, 69.2% of Astronics shares are held by institutional investors. 8.5% of Ducommun shares are held by company insiders. Comparatively, 16.6% of Astronics shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Ducommun and Astronics’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Ducommun and Astronics’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ducommun||$558.18 million||0.67||$20.07 million||$1.33||24.75|
|Astronics||$624.46 million||1.57||$19.67 million||$1.25||27.94|
Ducommun has higher earnings, but lower revenue than Astronics. Ducommun is trading at a lower price-to-earnings ratio than Astronics, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Ducommun has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Astronics has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.
This is a summary of recent ratings for Ducommun and Astronics, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ducommun currently has a consensus price target of $38.00, indicating a potential upside of 15.43%. Astronics has a consensus price target of $41.67, indicating a potential upside of 19.32%. Given Astronics’ higher probable upside, analysts clearly believe Astronics is more favorable than Ducommun.
Astronics beats Ducommun on 8 of the 14 factors compared between the two stocks.
Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace, defense, industrial, natural resources, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment offers cable assemblies and interconnect systems; printed circuit board assemblies; high-level electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, wire harnesses, surge suppressors, conformal shields, and other assemblies. It 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; 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, and engine components. The company serves commercial and military fixed-wing and rotary-wing aircraft, and space programs, as well as the industrial automation, medical, and other end-use markets. Ducommun Incorporated was founded in 1849 and is headquartered in Santa Ana, California.
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, electronics, and semiconductor industries worldwide. It operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems; electrical power generation, distribution, and motions systems; aircraft structures; avionics products; system certification; and connectivity and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers; and aircraft operators, such as airlines and branches of the U.S. Department of Defense, as well as the Federal Aviation Administration and airport operators. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the semiconductor, aerospace, communications, and weapons test systems, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. The company also provides cabin management and in-flight entertainment systems for a range of aircraft, as well as design consultancy services for the aerospace industry. Astronics Corporation was founded in 1968 and is headquartered in East Aurora, New York.
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