Analyzing Astrotech (NASDAQ:ASTC) and Ducommun (NYSE:DCO)

Astrotech (NASDAQ:ASTC) and Ducommun (NYSE:DCO) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Astrotech and Ducommun, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
Ducommun	0	2	5	0	2.71

Ducommun has a consensus target price of $162.00, suggesting a potential upside of 5.76%. Given Ducommun’s stronger consensus rating and higher probable upside, analysts clearly believe Ducommun is more favorable than Astrotech.

Insider & Institutional Ownership

24.4% of Astrotech shares are held by institutional investors. Comparatively, 92.2% of Ducommun shares are held by institutional investors. 16.8% of Astrotech shares are held by company insiders. Comparatively, 5.0% of Ducommun shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Astrotech and Ducommun’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,397.82%	-81.85%	-65.46%
Ducommun	-4.11%	8.41%	4.75%

Valuation and Earnings

This table compares Astrotech and Ducommun”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.01 million	45.56	-$13.85 million	($8.41)	-3.03
Ducommun	$841.27 million	2.75	-$37.35 million	($2.36)	-64.91

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

Risk & Volatility

Astrotech has a beta of 4.6, indicating that its share price is 360% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.

Summary

Ducommun beats Astrotech on 9 of the 14 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment 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; aerodynamic systems; 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, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.