Rockwell Collins (NYSE:COL) and American Science & Engineering (ASEI) Head to Head Analysis

American Science & Engineering (NASDAQ: ASEI) and Rockwell Collins (NYSE:COL) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Profitability

This table compares American Science & Engineering and Rockwell Collins’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Science & Engineering 0.19% 0.15% 0.13%
Rockwell Collins 10.33% 22.00% 6.90%

Earnings & Valuation

This table compares American Science & Engineering and Rockwell Collins’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Science & Engineering N/A N/A N/A ($0.37) -100.14
Rockwell Collins $6.82 billion 3.18 $705.00 million $4.78 27.83

Rockwell Collins has higher revenue and earnings than American Science & Engineering. American Science & Engineering is trading at a lower price-to-earnings ratio than Rockwell Collins, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

72.9% of American Science & Engineering shares are owned by institutional investors. Comparatively, 72.8% of Rockwell Collins shares are owned by institutional investors. 2.4% of American Science & Engineering shares are owned by company insiders. Comparatively, 1.5% of Rockwell Collins shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

American Science & Engineering pays an annual dividend of $2.00 per share and has a dividend yield of 5.4%. Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. American Science & Engineering pays out -540.5% of its earnings in the form of a dividend. Rockwell Collins pays out 27.6% 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. American Science & Engineering has increased its dividend for 2 consecutive years. American Science & Engineering is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for American Science & Engineering and Rockwell Collins, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Science & Engineering 0 0 0 0 N/A
Rockwell Collins 1 15 3 0 2.11

Rockwell Collins has a consensus target price of $125.35, suggesting a potential downside of 5.78%. Given Rockwell Collins’ higher probable upside, analysts clearly believe Rockwell Collins is more favorable than American Science & Engineering.

Summary

Rockwell Collins beats American Science & Engineering on 7 of the 12 factors compared between the two stocks.

American Science & Engineering Company Profile

American Science and Engineering, Inc. (AS&E) is engaged in developing, manufacturing, marketing and selling X-ray inspection and other detection products. The Company manufactures X-ray inspection products that can be used to inspect parcels, baggage, vehicles, pallets, cargo containers and people. The Company offers its products for homeland security, force protection, public safety and other critical defense and security applications. The Company’s products and services are grouped into approximately five areas: cargo inspection systems, which include OmniView Gantry System, Z Portal System, Sentry Portal System, CarView System and ASE Connect; mobile cargo inspection systems, which include Z Backscatter Van; parcel and personnel screening inspection systems, which include Gemini System, SmartCheck System and MINI Z System; custom products, and service and support.

Rockwell Collins Company Profile

Rockwell Collins, Inc. designs, produces and supports communications and aviation systems for commercial and military customers. The Company provides information management services through voice and data communication networks and solutions across the world. The Company operates through three segments: Commercial Systems, Government Systems and Information Management Services. The Commercial Systems segment supplies aviation electronics systems, products and services to customers located throughout the world. The Government Systems segment provides a range of electronic products, systems and services to customers including the United States Department of Defense, various ministries of defense, other government agencies and defense contractors around the world. The Information Management Services segment provides communications services, systems integration and security solutions across the aviation, airport, rail and nuclear security markets.

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