Critical Contrast: Orbital ATK (OA) versus Its Rivals

Orbital ATK (NYSE: OA) is one of 40 publicly-traded companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare Orbital ATK to similar businesses based on the strength of its valuation, profitability, institutional ownership, earnings, risk, analyst recommendations and dividends.

Earnings & Valuation

This table compares Orbital ATK and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Orbital ATK $4.46 billion $293.00 million 24.52
Orbital ATK Competitors $9.54 billion $776.55 million 229.25

Orbital ATK’s competitors have higher revenue and earnings than Orbital ATK. Orbital ATK is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Orbital ATK pays out 23.8% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 34.7% of their earnings in the form of a dividend.

Insider and Institutional Ownership

85.8% of Orbital ATK shares are owned by institutional investors. Comparatively, 72.6% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.2% of Orbital ATK shares are owned by company insiders. Comparatively, 5.3% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Orbital ATK and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orbital ATK 6.62% 17.32% 6.08%
Orbital ATK Competitors 6.14% 25.24% 4.97%

Analyst Recommendations

This is a summary of recent ratings and target prices for Orbital ATK and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orbital ATK 0 8 2 0 2.20
Orbital ATK Competitors 484 2204 2414 89 2.41

Orbital ATK presently has a consensus target price of $120.07, suggesting a potential downside of 8.97%. As a group, “Aerospace & Defense” companies have a potential upside of 13.57%. Given Orbital ATK’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Orbital ATK has less favorable growth aspects than its competitors.

Volatility & Risk

Orbital ATK has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, Orbital ATK’s competitors have a beta of 0.98, indicating that their average share price is 2% less volatile than the S&P 500.

Summary

Orbital ATK competitors beat Orbital ATK on 11 of the 15 factors compared.

About Orbital ATK

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.

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