Cubic Corporation (CUB) vs. Orbital ATK (OA) Head-To-Head Comparison

Cubic Corporation (NYSE: CUB) and Orbital ATK (NYSE:OA) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their profitabiliy, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Dividends

Cubic Corporation pays an annual dividend of $0.27 per share and has a dividend yield of 0.6%. Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. Cubic Corporation pays out -128.6% of its earnings in the form of a dividend.

Profitability

This table compares Cubic Corporation and Orbital ATK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cubic Corporation	-0.37%	-0.78%	-0.36%
Orbital ATK	5.86%	15.34%	5.22%

Institutional & Insider Ownership

89.5% of Cubic Corporation shares are owned by institutional investors. Comparatively, 86.3% of Orbital ATK shares are owned by institutional investors. 7.9% of Cubic Corporation shares are owned by insiders. Comparatively, 1.2% of Orbital ATK shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Cubic Corporation and Orbital ATK’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Cubic Corporation	$1.46 billion	0.86	$73.37 million	($0.21)	-219.52
Orbital ATK	$4.48 billion	1.33	$624.00 million	N/A	N/A

Orbital ATK has higher revenue and earnings than Cubic Corporation.

Analyst Ratings

This is a summary of current recommendations and price targets for Cubic Corporation and Orbital ATK, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cubic Corporation	0	0	3	0	3.00
Orbital ATK	0	2	8	0	2.80

Cubic Corporation currently has a consensus price target of $52.67, indicating a potential upside of 14.24%. Orbital ATK has a consensus price target of $102.75, indicating a potential downside of 0.82%. Given Cubic Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Cubic Corporation is more favorable than Orbital ATK.

Risk and Volatility

Cubic Corporation has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Orbital ATK has a beta of -0.31, meaning that its stock price is 131% less volatile than the S&P 500.

Summary

Orbital ATK beats Cubic Corporation on 8 of the 14 factors compared between the two stocks.

Cubic Corporation Company Profile

Cubic Corporation (Cubic) designs, integrates and operates systems, products and services that provide situational awareness for its customers in the transportation and defense industries. The Company operates in three business segments across the global transportation and defense markets, which include Cubic Transportation Systems (CTS), Cubic Global Defense (CGD) and Cubic Global Defense Services (CGD Services). The Company’s CTS segment is a systems integrator of payment and information technology and services for travel solutions. The Company’s CGD Systems is focused on two primary lines of business: training systems and secure communications (SC) products. The Company’s CGD Services segment is a provider of training, operations, intelligence, maintenance, technical and other support services to the United States government and its agencies and allied nations. It also provides cross-domain hardware solutions to address multi-level security challenges across common networks.

Orbital ATK Company Profile

Orbital ATK, Inc. is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition. The Flight Systems Group segment consists of Launch Vehicles Division, Propulsion Systems Division and Aerospace Structures Division. The Defense Systems Group segment consists of Armament Systems Division, Defense Electronic Division, Missile Products Division and Small Caliber Systems Division. The Space Systems Group consists of Commercial Satellites Division, Government Satellites Division, Space Components Division and Technical Services Division.