Head-To-Head Comparison: Triumph Group (TGI) and United Technologies (UTX)
Triumph Group (NYSE: TGI) and United Technologies (NYSE:UTX) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
99.8% of Triumph Group shares are owned by institutional investors. Comparatively, 80.2% of United Technologies shares are owned by institutional investors. 2.8% of Triumph Group shares are owned by company insiders. Comparatively, 0.2% of United Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for Triumph Group and United Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Triumph Group presently has a consensus price target of $33.11, suggesting a potential upside of 24.01%. United Technologies has a consensus price target of $126.31, suggesting a potential upside of 2.85%. Given Triumph Group’s higher possible upside, research analysts clearly believe Triumph Group is more favorable than United Technologies.
Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. United Technologies pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Triumph Group pays out -7.5% of its earnings in the form of a dividend. United Technologies pays out 43.3% 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. United Technologies has raised its dividend for 5 consecutive years. United Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Triumph Group and United Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Triumph Group and United Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Triumph Group||$3.53 billion||0.38||-$42.95 million||($2.13)||-12.54|
|United Technologies||$57.24 billion||1.71||$5.06 billion||$6.46||19.01|
United Technologies has higher revenue and earnings than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than United Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Triumph Group has a beta of 1.76, suggesting that its share price is 76% more volatile than the S&P 500. Comparatively, United Technologies has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500.
United Technologies beats Triumph Group on 11 of the 17 factors compared between the two stocks.
About Triumph Group
Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.
About United Technologies
United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company. UTC Climate, Controls & Security segment is engaged in providing heating, ventilating, air conditioning (HVAC) and refrigeration solutions. The Pratt & Whitney segment supplies aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney segment provides fleet management services and aftermarket maintenance, repair and overhaul services. The UTC Aerospace Systems segment provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.
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