Astronics (NASDAQ: ATRO) and Spirit AeroSystems (NYSE:SPR) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.
Risk & Volatility
Astronics has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Spirit AeroSystems has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
68.9% of Astronics shares are owned by institutional investors. Comparatively, 97.6% of Spirit AeroSystems shares are owned by institutional investors. 16.5% of Astronics shares are owned by company insiders. Comparatively, 0.9% of Spirit AeroSystems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Spirit AeroSystems pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Astronics does not pay a dividend. Spirit AeroSystems pays out 7.5% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Astronics and Spirit AeroSystems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Astronics||$624.46 million||1.73||$19.67 million||$1.25||30.72|
|Spirit AeroSystems||$6.98 billion||1.32||$354.90 million||$5.35||15.01|
Spirit AeroSystems has higher revenue and earnings than Astronics. Spirit AeroSystems is trading at a lower price-to-earnings ratio than Astronics, indicating that it is currently the more affordable of the two stocks.
This table compares Astronics and Spirit AeroSystems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and recommmendations for Astronics and Spirit AeroSystems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Astronics currently has a consensus target price of $44.67, suggesting a potential upside of 16.32%. Spirit AeroSystems has a consensus target price of $99.11, suggesting a potential upside of 23.40%. Given Spirit AeroSystems’ higher possible upside, analysts clearly believe Spirit AeroSystems is more favorable than Astronics.
Spirit AeroSystems beats Astronics on 10 of the 15 factors compared between the two stocks.
Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, electronics, and semiconductor industries worldwide. It operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems; electrical power generation, distribution, and motions systems; aircraft structures; avionics products; system certification; and connectivity and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers; and aircraft operators, such as airlines and branches of the U.S. Department of Defense, as well as the Federal Aviation Administration and airport operators. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the semiconductor, aerospace, communications, and weapons test systems, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. The company also provides cabin management and in-flight entertainment systems for a range of aircraft, as well as design consultancy services for the aerospace industry. Astronics Corporation was founded in 1968 and is headquartered in East Aurora, New York.
About Spirit AeroSystems
Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs, manufactures, and supplies commercial aero structures worldwide. It operates through three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and offers related spares and maintenance, repairs, and overhaul (MRO) services. The Propulsion Systems segment offers struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Wing Systems provides wings and wing components, such as flight control surfaces; and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. It also offers low observables comprising radar absorbent and translucent materials; rotorcrafts that include forward cockpits and cabins; and other military services, which comprise fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.
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