Cubic Corporation (NYSE: CUB) is one of 48 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Cubic Corporation to similar businesses based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, dividends and risk.

Insider and Institutional Ownership

88.6% of Cubic Corporation shares are owned by institutional investors. Comparatively, 70.6% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 7.9% of Cubic Corporation shares are owned by insiders. Comparatively, 6.9% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Cubic Corporation -2.20% -4.74% -2.22%
Cubic Corporation Competitors -10.23% 21.68% 3.50%

Valuation & Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Cubic Corporation $1.46 billion $1.73 million -44.54
Cubic Corporation Competitors $8.69 billion $780.31 million 185.13

Cubic Corporation’s rivals have higher revenue and earnings than Cubic Corporation. Cubic 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

Cubic Corporation pays an annual dividend of $0.27 per share and has a dividend yield of 0.5%. Cubic Corporation pays out -22.7% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.3% and pay out 34.4% of their earnings in the form of a dividend.

Volatility and Risk

Cubic Corporation has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Cubic Corporation’s rivals have a beta of 1.08, suggesting that their average stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Cubic Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cubic Corporation 0 0 6 0 3.00
Cubic Corporation Competitors 504 2363 2613 87 2.41

Cubic Corporation presently has a consensus price target of $56.67, indicating a potential upside of 6.92%. As a group, “Aerospace & Defense” companies have a potential upside of 9.30%. Given Cubic Corporation’s rivals higher possible upside, analysts clearly believe Cubic Corporation has less favorable growth aspects than its rivals.

Summary

Cubic Corporation rivals beat Cubic Corporation on 8 of the 14 factors compared.

About Cubic Corporation

Cubic Corporation (Cubic) designs, integrates and operates systems, products and services that provide situational awareness for its customers in the transportation and defense industries. The Company operates in three business segments across the global transportation and defense markets, which include Cubic Transportation Systems (CTS), Cubic Global Defense (CGD) and Cubic Global Defense Services (CGD Services). The Company’s CTS segment is a systems integrator of payment and information technology and services for travel solutions. The Company’s CGD Systems is focused on two primary lines of business: training systems and secure communications (SC) products. The Company’s CGD Services segment is a provider of training, operations, intelligence, maintenance, technical and other support services to the United States government and its agencies and allied nations. It also provides cross-domain hardware solutions to address multi-level security challenges across common networks.

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