Mercury Systems (NASDAQ: MRCY) and Moog (NYSE:MOG.A) are both mid-cap computer and technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

Mercury Systems has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, Moog has a beta of 1.82, indicating that its share price is 82% more volatile than the S&P 500.

Earnings & Valuation

This table compares Mercury Systems and Moog’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Mercury Systems $408.59 million 5.53 $77.23 million $0.58 80.98
Moog N/A N/A N/A $3.75 N/A

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

Insider & Institutional Ownership

97.5% of Mercury Systems shares are owned by institutional investors. Comparatively, 83.0% of Moog shares are owned by institutional investors. 4.3% of Mercury Systems shares are owned by insiders. Comparatively, 2.4% of Moog shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Mercury Systems and Moog, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercury Systems 0 2 6 0 2.75
Moog 0 2 0 0 2.00

Mercury Systems presently has a consensus target price of $42.20, suggesting a potential downside of 10.16%. Moog has a consensus target price of $75.00, suggesting a potential upside of Infinity. Given Moog’s higher probable upside, analysts clearly believe Moog is more favorable than Mercury Systems.

Profitability

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

Net Margins Return on Equity Return on Assets
Mercury Systems 6.09% 4.87% 3.56%
Moog 5.50% 14.06% 4.83%

Summary

Mercury Systems beats Moog on 7 of the 12 factors compared between the two stocks.

About Mercury Systems

Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.

About Moog

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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