Critical Analysis: Huntington Ingalls Industries (HII) & Moog (MOG)

Huntington Ingalls Industries (NYSE: HII) and Moog (NYSE:MOG) are both mid-cap aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares Huntington Ingalls Industries and Moog’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Huntington Ingalls Industries 8.31% 33.37% 8.90%
Moog 5.95% 13.33% 5.07%

Risk & Volatility

Huntington Ingalls Industries has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Moog has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Huntington Ingalls Industries and Moog, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Huntington Ingalls Industries 2 3 2 0 2.00
Moog 0 1 0 0 2.00

Huntington Ingalls Industries presently has a consensus target price of $212.67, suggesting a potential downside of 10.27%. Moog has a consensus target price of $75.00, suggesting a potential downside of 13.27%. Given Huntington Ingalls Industries’ higher probable upside, equities research analysts plainly believe Huntington Ingalls Industries is more favorable than Moog.

Valuation & Earnings

This table compares Huntington Ingalls Industries and Moog’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Huntington Ingalls Industries $7.07 billion 1.52 $573.00 million $13.24 17.90
Moog N/A N/A N/A $3.90 22.17

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

Dividends

Huntington Ingalls Industries pays an annual dividend of $2.88 per share and has a dividend yield of 1.2%. Moog does not pay a dividend. Huntington Ingalls Industries pays out 21.8% of its earnings in the form of a dividend. Huntington Ingalls Industries has raised its dividend for 4 consecutive years.

Insider & Institutional Ownership

84.2% of Huntington Ingalls Industries shares are owned by institutional investors. 2.2% of Huntington Ingalls Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Huntington Ingalls Industries beats Moog on 11 of the 13 factors compared between the two stocks.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries, Inc. is a military shipbuilding company and a provider of professional services to partners in government and industry. The Company’s business consists of the design, construction, repair and maintenance of nuclear-powered ships and non-nuclear ships for the United States Navy and coastal defense surface ships for the United States Coast Guard, as well as the refueling and overhaul and inactivation of nuclear-powered ships for the United States Navy. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News) and Technical Solutions. Its Ingalls segment includes its non-nuclear ship design, construction, repair and maintenance businesses. Its Newport News includes all of its nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. Its Technical Solutions segment provides a range of professional services to the governmental, energy, and oil and gas markets.

Moog Company Profile

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. 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. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

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