Head-To-Head Review: Moog (NYSE:MOG.A) versus StandardAero (NYSE:SARO)

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

Institutional & Insider Ownership

88.0% of Moog shares are owned by institutional investors. 2.1% of StandardAero shares are owned by insiders. Comparatively, 1.5% of Moog shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

StandardAero has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Moog has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
StandardAero	5.12%	14.52%	5.80%
Moog	8.73%	17.67%	7.94%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$6.06 billion	1.35	$277.42 million	$0.97	25.53
Moog	$3.86 billion	3.06	$235.03 million	$11.76	31.71

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

Analyst Recommendations

This is a summary of current ratings for StandardAero and Moog, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	6	7	2	2.73
Moog	0	0	3	0	3.00

StandardAero currently has a consensus target price of $34.77, suggesting a potential upside of 40.41%. Moog has a consensus target price of $462.33, suggesting a potential upside of 23.98%. Given StandardAero’s higher probable upside, research analysts clearly believe StandardAero is more favorable than Moog.

Summary

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

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

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.