Analyzing MTU Aero Engines (OTCMKTS:MTUAY) and Conrad Industries (OTCMKTS:CNRD)

MTU Aero Engines (OTCMKTS:MTUAY) and Conrad Industries (OTCMKTS:CNRD) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Profitability

This table compares MTU Aero Engines and Conrad Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MTU Aero Engines	10.79%	25.61%	7.77%
Conrad Industries	4.54%	17.11%	9.83%

Earnings and Valuation

This table compares MTU Aero Engines and Conrad Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MTU Aero Engines	$8.02 billion	3.09	$684.97 million	$9.23	24.95
Conrad Industries	$303.41 million	0.48	$11.23 million	$3.02	9.61

MTU Aero Engines has higher revenue and earnings than Conrad Industries. Conrad Industries is trading at a lower price-to-earnings ratio than MTU Aero Engines, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

0.0% of MTU Aero Engines shares are owned by institutional investors. Comparatively, 0.6% of Conrad Industries shares are owned by institutional investors. 31.5% of Conrad Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

MTU Aero Engines has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Conrad Industries has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for MTU Aero Engines and Conrad Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MTU Aero Engines	0	4	2	1	2.57
Conrad Industries	0	0	0	0	0.00

Dividends

MTU Aero Engines pays an annual dividend of $0.83 per share and has a dividend yield of 0.4%. Conrad Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. MTU Aero Engines pays out 9.0% of its earnings in the form of a dividend. Conrad Industries pays out 13.2% 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.

Summary

MTU Aero Engines beats Conrad Industries on 12 of the 16 factors compared between the two stocks.

About MTU Aero Engines

MTU Aero Engines AG, together with its subsidiaries, engages in the development, manufacture, marketing, and maintenance of commercial and military aircraft engines, and aero-derivative industrial gas turbines in Germany, other European countries, North America, Asia, and internationally. It operates through two segments: Original Equipment Manufacturing (OEM Business); and Maintenance, Repair, and Overhaul (MRO Business). The company offers commercial aircraft engines for wide body jets, narrow body and regional jets, business jets, and turboprops; military aircraft engines for fighter jets, helicopters, and transporters; and industrial gas turbines. It also maintains, repairs, and overhauls commercial and military engines; and manufactures and markets various spare parts. The company was formerly known as MTU Aero Engines Holding AG and changed its name to MTU Aero Engines AG in May 2013. MTU Aero Engines AG was founded in 1913 and is headquartered in Munich, Germany.

About Conrad Industries

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.