Head to Head Review: Woodward (NASDAQ:WWD) and Moog (NYSE:MOG.A)

Woodward (NASDAQ:WWD) and Moog (NYSE:MOG.A) are both large-cap aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Woodward and Moog, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woodward	0	4	11	1	2.81
Moog	0	0	0	1	4.00

Woodward presently has a consensus price target of $393.00, indicating a potential upside of 12.28%. Given Woodward’s higher probable upside, analysts plainly believe Woodward is more favorable than Moog.

Dividends

Woodward pays an annual dividend of $1.28 per share and has a dividend yield of 0.4%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Woodward pays out 15.3% of its earnings in the form of a dividend. Moog pays out 13.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Woodward has raised its dividend for 5 consecutive years. Woodward is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Woodward has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Moog has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Woodward and Moog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woodward	12.85%	20.12%	10.72%
Moog	6.83%	16.11%	7.15%

Insider & Institutional Ownership

81.2% of Woodward shares are owned by institutional investors. Comparatively, 88.0% of Moog shares are owned by institutional investors. 0.7% of Woodward shares are owned by company insiders. Comparatively, 1.5% of Moog shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Woodward and Moog”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woodward	$3.57 billion	5.85	$442.11 million	$8.35	41.92
Moog	$3.86 billion	3.09	$235.03 million	$8.89	42.29

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

Summary

Woodward beats Moog on 9 of the 17 factors compared between the two stocks.

About Woodward

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and controls systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers controls for steering tactical and strategic missiles, and naval surface ships and submarines; and weapons stores management systems for light attack aerial reconnaissance, ground, and sea platforms, as well as slip rings, fiber optic rotary joints, and motors. The company's Industrial Systems segment provides components and systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; supplies electromechanical motion simulation bases for the flight simulation and training applications; and supplies solutions for power generation applications, as well as custom test systems and controls for automotive, structural, and fatigue testing. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition; and hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors, and infusion and enteral pumps. The company was founded in 1951 and is headquartered in East Aurora, New York.