United Technologies Corporation (NYSE: UTX) and American Science & Engineering (NASDAQ:ASEI) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for United Technologies Corporation and American Science & Engineering, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Technologies Corporation 0 11 4 0 2.27
American Science & Engineering 0 0 0 0 N/A

United Technologies Corporation currently has a consensus target price of $123.43, indicating a potential upside of 4.68%. Given United Technologies Corporation’s higher probable upside, analysts plainly believe United Technologies Corporation is more favorable than American Science & Engineering.

Risk and Volatility

United Technologies Corporation has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, American Science & Engineering has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.

Dividends

United Technologies Corporation pays an annual dividend of $2.80 per share and has a dividend yield of 2.4%. American Science & Engineering pays an annual dividend of $2.00 per share and has a dividend yield of 5.4%. United Technologies Corporation pays out 42.7% of its earnings in the form of a dividend. American Science & Engineering pays out -540.5% 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 5 consecutive years. American Science & Engineering is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

78.9% of United Technologies Corporation shares are held by institutional investors. Comparatively, 72.9% of American Science & Engineering shares are held by institutional investors. 0.2% of United Technologies Corporation shares are held by insiders. Comparatively, 2.4% of American Science & Engineering shares are held by 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.

Profitability

This table compares United Technologies Corporation and American Science & Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Technologies Corporation 9.15% 18.07% 5.91%
American Science & Engineering 0.19% 0.15% 0.13%

Valuation & Earnings

This table compares United Technologies Corporation and American Science & Engineering’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Technologies Corporation $58.11 billion 1.62 $10.15 billion $6.56 17.98
American Science & Engineering N/A N/A N/A ($0.37) -100.13

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

Summary

United Technologies Corporation beats American Science & Engineering on 8 of the 13 factors compared between the two stocks.

United Technologies Corporation Company Profile

United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company. UTC Climate, Controls & Security segment is engaged in providing heating, ventilating, air conditioning (HVAC) and refrigeration solutions. The Pratt & Whitney segment supplies aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney segment provides fleet management services and aftermarket maintenance, repair and overhaul services. The UTC Aerospace Systems segment provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.

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.

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