GE Aerospace (NYSE:GE) & Woodward (NASDAQ:WWD) Financial Review

GE Aerospace (NYSE:GE) and Woodward (NASDAQ:WWD) are both large-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Dividends

GE Aerospace pays an annual dividend of $1.88 per share and has a dividend yield of 0.6%. Woodward pays an annual dividend of $1.28 per share and has a dividend yield of 0.4%. GE Aerospace pays out 21.7% of its earnings in the form of a dividend. Woodward pays out 14.2% 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. GE Aerospace has raised its dividend for 2 consecutive years and Woodward has raised its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for GE Aerospace and Woodward, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Aerospace	1	3	16	0	2.75
Woodward	0	3	9	1	2.85

GE Aerospace currently has a consensus target price of $373.45, indicating a potential upside of 10.35%. Woodward has a consensus target price of $413.82, indicating a potential upside of 23.85%. Given Woodward’s stronger consensus rating and higher possible upside, analysts plainly believe Woodward is more favorable than GE Aerospace.

Risk and Volatility

GE Aerospace has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, Woodward has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

74.8% of GE Aerospace shares are owned by institutional investors. Comparatively, 81.2% of Woodward shares are owned by institutional investors. 0.2% of GE Aerospace shares are owned by insiders. Comparatively, 0.7% of Woodward shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GE Aerospace	17.31%	44.43%	6.30%
Woodward	13.17%	21.89%	11.38%

Valuation and Earnings

This table compares GE Aerospace and Woodward”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Aerospace	$45.85 billion	7.63	$8.70 billion	$8.67	39.03
Woodward	$4.19 billion	4.71	$442.11 million	$8.99	37.17

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

About GE Aerospace

GE Aerospace (NYSE: GE) designs, manufactures and services engines and related systems for commercial and military aircraft. Its offerings include aircraft engines, components, avionics and other integrated systems, along with maintenance, repair and overhaul services and digital solutions that support aircraft operations. The company serves airlines, aircraft manufacturers, governments and defense organizations around the world. Its business combines original equipment production with long-term aftermarket support, including parts and technical services for engines already in operation.

About Woodward

Woodward, Inc. designs and manufactures control systems and components for the aerospace and industrial markets. Its products help manage the operation of aircraft engines, turbines, and other equipment used in power generation and industrial applications. In aerospace, Woodward supplies systems and components for commercial and military aircraft, helicopters, business aviation, and space applications. These include engine controls, fuel systems, actuation equipment, and components that regulate airflow and combustion.