Head to Head Analysis: Moog (NYSE:MOG.A) vs. Loar (NYSE:LOAR)

Moog (NYSE:MOG.A) and Loar (NYSE:LOAR) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Institutional and Insider Ownership

87.9% of Moog shares are owned by institutional investors. 1.5% of Moog shares are owned by insiders. Comparatively, 20.1% of Loar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Moog has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Loar has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares Moog and Loar”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moog	$4.17 billion	3.11	$235.03 million	$8.89	46.10
Loar	$496.28 million	13.50	$72.15 million	$0.71	100.81

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

Analyst Recommendations

This is a summary of recent recommendations for Moog and Loar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moog	0	0	1	1	3.50
Loar	0	2	4	0	2.67

Moog currently has a consensus price target of $450.00, indicating a potential upside of 9.81%. Loar has a consensus price target of $83.00, indicating a potential upside of 15.96%. Given Loar’s higher possible upside, analysts clearly believe Loar is more favorable than Moog.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Moog	6.83%	16.11%	7.15%
Loar	12.64%	8.47%	5.35%

Summary

Moog beats Loar on 9 of the 15 factors compared between the two stocks.

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.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.