Raytheon (NYSE: RTN) and Moog (NYSE:MOG) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Raytheon pays an annual dividend of $3.19 per share and has a dividend yield of 1.5%. Moog does not pay a dividend. Raytheon pays out 46.0% of its earnings in the form of a dividend. Raytheon has raised its dividend for 13 consecutive years.
This is a summary of recent ratings and recommmendations for Raytheon and Moog, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Raytheon currently has a consensus target price of $211.93, suggesting a potential downside of 2.66%. Moog has a consensus target price of $82.00, suggesting a potential downside of 5.84%. Given Raytheon’s stronger consensus rating and higher probable upside, research analysts clearly believe Raytheon is more favorable than Moog.
This table compares Raytheon and Moog’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Raytheon and Moog’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Raytheon||$25.35 billion||2.48||$2.02 billion||$6.94||31.37|
Raytheon has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than Raytheon, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Raytheon has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Moog has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500.
Insider and Institutional Ownership
72.7% of Raytheon shares are owned by institutional investors. 0.2% of Raytheon shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Raytheon beats Moog on 13 of the 15 factors compared between the two stocks.
Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity. The Company operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS), and Forcepoint. The IDS segment develops and produces sensors and mission systems. The IIS segment provides a range of technical and professional services to intelligence, defense, federal and commercial customers. The MS segment is a developer, integrator and producer of missile and combat systems. The SAS segment is engaged in the design, development and manufacture of integrated sensor and communication systems for missions. The Forcepoint segment develops cybersecurity products.
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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