Environmental Tectonics (OTCMKTS:ETCC) & Woodward (NASDAQ:WWD) Financial Analysis

Environmental Tectonics (OTCMKTS:ETCC) and Woodward (NASDAQ:WWD) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Volatility and Risk

Environmental Tectonics has a beta of 0.49, indicating that its share price is 51% less volatile than the S&P 500. Comparatively, Woodward has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Environmental Tectonics and Woodward, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Environmental Tectonics	0	0	0	0	0.00
Woodward	0	3	9	1	2.85

Woodward has a consensus price target of $323.89, indicating a potential upside of 1.35%. Given Woodward’s stronger consensus rating and higher possible upside, analysts plainly believe Woodward is more favorable than Environmental Tectonics.

Profitability

This table compares Environmental Tectonics and Woodward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Environmental Tectonics	15.91%	281.64%	11.13%
Woodward	12.39%	17.68%	9.35%

Valuation & Earnings

This table compares Environmental Tectonics and Woodward”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Environmental Tectonics	$62.94 million	0.15	$13.06 million	$0.60	1.60
Woodward	$3.57 billion	5.38	$442.11 million	$7.19	44.45

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

Insider & Institutional Ownership

81.2% of Woodward shares are held by institutional investors. 74.8% of Environmental Tectonics shares are held by insiders. Comparatively, 0.7% of Woodward shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Woodward beats Environmental Tectonics on 11 of the 15 factors compared between the two stocks.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.

About Woodward

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.