Moog (NYSE:MOG.B – Get Free Report) and Rheinmetall (OTCMKTS:RNMBY – Get Free Report) are both large-cap aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Volatility and Risk
Moog has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Rheinmetall has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.
Earnings and Valuation
This table compares Moog and Rheinmetall”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Moog | $3.86 billion | 2.85 | $235.03 million | $6.59 | 52.61 |
| Rheinmetall | $10.55 billion | 8.29 | $775.87 million | $2.52 | 151.36 |
Rheinmetall has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than Rheinmetall, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Moog and Rheinmetall, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Moog | 0 | 0 | 0 | 0 | 0.00 |
| Rheinmetall | 1 | 0 | 5 | 1 | 2.86 |
Dividends
Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Rheinmetall pays an annual dividend of $1.26 per share and has a dividend yield of 0.3%. Moog pays out 18.2% of its earnings in the form of a dividend. Rheinmetall pays out 50.0% 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. Moog is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
8.1% of Moog shares are owned by institutional investors. 2.4% of Moog shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Moog and Rheinmetall’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Moog | 6.38% | 15.47% | 6.85% |
| Rheinmetall | N/A | N/A | N/A |
Summary
Moog beats Rheinmetall on 9 of the 16 factors compared between the two stocks.
About Moog
Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. 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; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.
About Rheinmetall
Rheinmetall AG provides mobility and security technologies worldwide. The company operates in five segments: Vehicle Systems, Weapon and Ammunition, Electronic Solutions, Sensors and Actuators, and Materials and Trade. The Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and munition, protection systems, propellants and international projects and services. The Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, and cyberspace protection solutions, and training and simulation solutions. Its products include air defense systems; soldier systems; command, control, and reconnaissance systems; fire control systems; sensors; and simulations for the army, air force, navy, and civil applications. The Sensors and Actuators segment provides a portfolio of products comprising exhaust gas recirculation systems; throttle valves, control dampers, and exhaust flaps for electromotors; solenoid valves; actuators and valve train systems; oil, water, and vacuum pumps for passenger cars, commercial vehicles, and light and heavy-duty off-road applications; and industrial solutions. The Materials and Trade segment develops system components for the basic motors, such as engine blocks, structural components, and cylinder heads; plain bearings, and bushes; and replacement parts. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.
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