Financial Survey: Saab (OTCMKTS:SAABY) and Moog (NYSE:MOG.A)

Saab (OTCMKTS:SAABY) and Moog (NYSE:MOG.A) are both large-cap aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, valuation, earnings, dividends, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

88.0% of Moog shares are owned by institutional investors. 1.5% of Moog 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.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Saab and Moog, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Saab	1	2	0	0	1.67
Moog	0	0	1	1	3.50

Moog has a consensus target price of $450.00, suggesting a potential upside of 11.53%. Given Moog’s stronger consensus rating and higher possible upside, analysts clearly believe Moog is more favorable than Saab.

Profitability

This table compares Saab and Moog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Saab	7.87%	15.43%	5.65%
Moog	6.83%	16.11%	7.15%

Dividends

Saab pays an annual dividend of $0.06 per share and has a dividend yield of 0.2%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Saab pays out 7.7% of its earnings in the form of a dividend. Moog pays out 13.5% 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.

Valuation and Earnings

This table compares Saab and Moog”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Saab	$8.42 billion	3.32	$645.29 million	$0.78	33.46
Moog	$3.86 billion	3.31	$235.03 million	$8.89	45.39

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

Volatility and Risk

Saab has a beta of -0.15, suggesting that its stock price is 115% less volatile than the S&P 500. Comparatively, Moog has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Summary

Moog beats Saab on 12 of the 17 factors compared between the two stocks.

About Saab

Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and controls 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 controls for steering tactical and strategic missiles, and naval surface ships and submarines; and weapons stores management systems for light attack aerial reconnaissance, ground, and sea platforms, as well as slip rings, fiber optic rotary joints, and motors. The company's Industrial Systems segment provides components and systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; supplies electromechanical motion simulation bases for the flight simulation and training applications; and supplies solutions for power generation applications, as well as custom test systems and controls for automotive, structural, and fatigue testing. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition; and hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors, and infusion and enteral pumps. The company was founded in 1951 and is headquartered in East Aurora, New York.