Financial Contrast: Textron (TXT) vs. Triumph Group (TGI)
Textron (NYSE: TXT) and Triumph Group (NYSE:TGI) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, dividends, risk, profitability, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
83.3% of Textron shares are held by institutional investors. 1.2% of Textron shares are held by company insiders. Comparatively, 2.8% of Triumph Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent recommendations for Textron and Triumph Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Textron currently has a consensus target price of $67.91, indicating a potential upside of 3.71%. Triumph Group has a consensus target price of $32.40, indicating a potential upside of 23.43%. Given Triumph Group’s higher possible upside, analysts plainly believe Triumph Group is more favorable than Textron.
Valuation & Earnings
This table compares Textron and Triumph Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Textron||$14.20 billion||1.21||$307.00 million||$2.45||26.73|
|Triumph Group||$3.53 billion||0.37||-$42.95 million||$6.54||4.01|
Textron has higher revenue and earnings than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than Textron, indicating that it is currently the more affordable of the two stocks.
This table compares Textron and Triumph Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Textron has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Triumph Group has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.
Textron pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Textron pays out 3.3% of its earnings in the form of a dividend. Triumph Group pays out 2.4% 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. Triumph Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Textron Company Profile
Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. The company's Textron Aviation segment manufactures and sells business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and commercial parts, as well as provides maintenance, inspection, and repair services. Its Bell segment provides military and commercial helicopters, tiltrotor aircraft, and related spare parts and services. The company's Textron Systems segment offers unmanned, marine, and land systems; simulation, training, and other defense and aviation mission support products and systems; airborne and ground-based sensors and surveillance systems, and protection systems; advanced precision guided weapons systems; armored vehicles, turrets, and related subsystems, as well as marine craft; test equipment and electronic warfare test, and training solutions; piston aircraft engines; and intelligence software solutions. This segment also designs, develops, manufactures, installs, and maintains full flight simulators; and offers logistical support and supply chain services. Its Industrial segment offers blow-molded plastic fuel systems; catalytic reduction systems; plastic bottles and containers; golf cars, off-road utility and light transportation vehicles, recreational and all-terrain vehicles, snowmobiles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles; and powered equipment, electrical test and measurement instruments, mechanical and hydraulic tools, cable connectors, fiber optic assemblies, underground and aerial transmission and distribution products, and power utility products for construction, maintenance, telecommunications, data communications, electrical, utility, and plumbing industries. The company's Finance segment provides financing to purchase new and pre-owned aircraft and helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.
Triumph Group Company Profile
Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls, and distributes aero structures, aircraft components, accessories, subassemblies, and systems worldwide. The company operates through four segments: Integrated Systems, Aerospace Structures, Precision Components, and Product Support. It offers aircraft and engine mounted accessory drives, thermal control systems and components, cargo hooks, high lift actuations, cockpit control levers, hydraulic systems and components, landing gear actuation systems, control system valve bodies, landing gear components and assemblies, electronic engine controls, main engine gear box assemblies, exhaust nozzles and ducting, fuel pumps, geared transmissions and drive train components, secondary flight control systems, fuel metering units, and vibration absorbers, as well as offers processing services. The company also offers aircraft wings, flight control surfaces, composite and metal bonding, helicopter cabins, engine nacelles, precision machined parts, stretch-formed leading edges and fuselage skins, empennages, wing spars and stringers, acoustic and thermal insulation systems, and composite ducts and floor panels. In addition, it offers product support services, including component maintenance, repair, and overhaul, as well as postproduction supply chain services for air cycle machines, blades and vanes, APUs, cabin panes, shades, light lenses and other components, speed drives, combustors, engine and airframe accessories, stators, transition ducts, integrated drive generators, sidewalls, light assemblies, remote sensors, overhead bins, thrust reversers, and fuel bladder cells. The company serves the aviation industry, including original equipment manufacturers of commercial, regional, business, and military aircraft and aircraft components, as well as commercial and regional airlines and air cargo carriers. Triumph Group, Inc. was founded in 1993 and is headquartered in Berwyn, Pennsylvania.
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