Curtiss-Wright Corporation (NYSE: CW) and Ducommun (NYSE:DCO) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their profitabiliy, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

77.0% of Curtiss-Wright Corporation shares are held by institutional investors. Comparatively, 80.4% of Ducommun shares are held by institutional investors. 1.1% of Curtiss-Wright Corporation shares are held by company insiders. Comparatively, 8.2% of Ducommun shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

Curtiss-Wright Corporation pays an annual dividend of $0.52 per share and has a dividend yield of 0.5%. Ducommun does not pay a dividend. Curtiss-Wright Corporation pays out 11.8% of its earnings in the form of a dividend. Ducommun has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Curtiss-Wright Corporation and Ducommun, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Curtiss-Wright Corporation 0 3 2 0 2.40
Ducommun 0 1 3 0 2.75

Curtiss-Wright Corporation presently has a consensus price target of $107.00, indicating a potential upside of 10.31%. Ducommun has a consensus price target of $37.00, indicating a potential upside of 27.06%. Given Ducommun’s stronger consensus rating and higher possible upside, analysts clearly believe Ducommun is more favorable than Curtiss-Wright Corporation.

Earnings and Valuation

This table compares Curtiss-Wright Corporation and Ducommun’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Curtiss-Wright Corporation $2.16 billion 1.98 $414.23 million $4.41 22.00
Ducommun $544.79 million 0.60 $52.24 million $1.20 24.27

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

Profitability

This table compares Curtiss-Wright Corporation and Ducommun’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Curtiss-Wright Corporation 9.14% 14.79% 6.42%
Ducommun 2.50% 7.49% 3.07%

Risk & Volatility

Curtiss-Wright Corporation has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500.

Summary

Curtiss-Wright Corporation beats Ducommun on 10 of the 17 factors compared between the two stocks.

About Curtiss-Wright Corporation

Curtiss-Wright Corporation is a manufacturing and service company that designs, manufactures, and overhauls precision components and provides engineered products and services to the aerospace, defense, power generation and general industrial markets. The Company operates through three segments: Commercial/Industrial, Defense and Power. The Commercial/Industrial segment’s products include electronic throttle control devices and transmission shifters, electro-mechanical actuation control components, valves, and surface technology services. The Defense segment’s products include commercial off-the-shelf (COTS) embedded computing board level modules, turret aiming and stabilization products, weapons handling systems, avionics and electronics, flight test equipment, and aircraft data management solutions. The Power segment’s products include a range of hardware, pumps, valves, fastening systems, specialized containment doors, airlock hatches and spent fuel management products.

About Ducommun

Ducommun Incorporated is a global provider of engineering and manufacturing services for various products and failure applications used primarily in the aerospace, defense, industrial, natural resources, medical and other industries. The Company is a solution-based provider, offering a range of value-added products and services in its primary businesses of electronics, structures and integrated solutions. The Company operates through two segments: Electronic Systems (ES) and Structural Systems (SS). The ES has over three product offerings in electronics manufacturing for various applications, including complex cable assemblies and interconnect systems, printed circuit board assemblies, and electronic, electromechanical and mechanical assemblies. The SS segment offers over three product offerings to support a customer base, including commercial aircraft, military fixed-wing aircraft, and military and commercial rotary-wing aircraft.

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