Elbit Systems (NASDAQ: ESLT) and Moog (NYSE:MOG) are both mid-cap aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.
Valuation and Earnings
This table compares Elbit Systems and Moog’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Elbit Systems||$3.26 billion||1.89||$236.90 million||$5.58||25.85|
Elbit Systems has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than Elbit Systems, indicating that it is currently the more affordable of the two stocks.
This table compares Elbit Systems and Moog’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Elbit Systems pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. Moog does not pay a dividend. Elbit Systems pays out 22.9% of its earnings in the form of a dividend.
This is a summary of current ratings and target prices for Elbit Systems and Moog, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Elbit Systems presently has a consensus target price of $110.00, suggesting a potential downside of 23.74%. Moog has a consensus target price of $75.00, suggesting a potential downside of 14.47%. Given Moog’s higher probable upside, analysts clearly believe Moog is more favorable than Elbit Systems.
Volatility and Risk
Elbit Systems has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Moog has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.
Institutional & Insider Ownership
11.2% of Elbit Systems shares are owned by institutional investors. 0.8% of Elbit Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Elbit Systems beats Moog on 8 of the 11 factors compared between the two stocks.
Elbit Systems Company Profile
Elbit Systems Ltd. is an international technology company engaged in a range of programs across the world. The Company develops and supplies a portfolio of airborne, land and naval systems and products for defense, homeland security and commercial aviation applications. Its systems and products are installed on new platforms, and it also performs platform modernization programs. In addition, it provides a range of support services. The Company’s activities include military aircraft and helicopter systems; helmet mounted systems; commercial aviation systems and aerostructures; unmanned aircraft and unmanned surface vessels; land vehicle systems; command, control, communications, computer and intelligence (C4I) systems; intelligence and cyber systems; electro-optic and countermeasures systems; electronic warfare and signal intelligence systems, and various commercial activities. It operates primarily in the defense and homeland security arenas.
Moog Company Profile
Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. 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. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.
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