United Technologies Corporation (UTX) & Its Rivals Financial Analysis

United Technologies Corporation (NYSE: UTX) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare United Technologies Corporation to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, risk, profitability, dividends and valuation.

Insider & Institutional Ownership

78.9% of United Technologies Corporation shares are owned by institutional investors. Comparatively, 70.8% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 0.2% of United Technologies Corporation shares are owned by insiders. Comparatively, 7.4% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares United Technologies Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Technologies Corporation 9.15% 18.07% 5.91%
United Technologies Corporation Competitors -2.01% 25.10% 4.00%

Risk and Volatility

United Technologies Corporation has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, United Technologies Corporation’s rivals have a beta of 1.05, meaning that their average share price is 5% more volatile than the S&P 500.

Valuation & Earnings

This table compares United Technologies Corporation and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
United Technologies Corporation $58.11 billion $10.15 billion 16.81
United Technologies Corporation Competitors $8.56 billion $1.20 billion 81.34

United Technologies Corporation has higher revenue and earnings than its rivals. United Technologies Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

United Technologies Corporation pays an annual dividend of $2.80 per share and has a dividend yield of 2.5%. United Technologies Corporation pays out 42.7% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.6% and pay out 36.1% of their earnings in the form of a dividend. United Technologies Corporation has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of recent ratings and target prices for United Technologies Corporation and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Technologies Corporation 0 13 4 0 2.24
United Technologies Corporation Competitors 552 2244 2399 89 2.38

United Technologies Corporation currently has a consensus target price of $124.13, suggesting a potential upside of 12.56%. As a group, “Aerospace & Defense” companies have a potential upside of 7.47%. Given United Technologies Corporation’s higher possible upside, equities research analysts clearly believe United Technologies Corporation is more favorable than its rivals.

Summary

United Technologies Corporation rivals beat United Technologies Corporation on 8 of the 15 factors compared.

About United Technologies Corporation

United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company. UTC Climate, Controls & Security segment is engaged in providing heating, ventilating, air conditioning (HVAC) and refrigeration solutions. The Pratt & Whitney segment supplies aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney segment provides fleet management services and aftermarket maintenance, repair and overhaul services. The UTC Aerospace Systems segment provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.

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