Critical Comparison: Orbital ATK (OA) versus Its Peers
Orbital ATK (NYSE: OA) is one of 40 public companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Orbital ATK to similar businesses based on the strength of its earnings, profitability, valuation, analyst recommendations, institutional ownership, risk and dividends.
Volatility & Risk
Orbital ATK has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Orbital ATK’s rivals have a beta of 1.09, meaning that their average share price is 9% more volatile than the S&P 500.
This table compares Orbital ATK and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orbital ATK Competitors||-6.72%||22.87%||3.50%|
Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Orbital ATK pays out 23.7% 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 36.1% of their earnings in the form of a dividend.
Institutional and Insider Ownership
85.8% of Orbital ATK shares are held by institutional investors. Comparatively, 73.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.2% of Orbital ATK shares are held by insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Orbital ATK and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Orbital ATK||$4.46 billion||$293.00 million||24.48|
|Orbital ATK Competitors||$8.89 billion||$721.62 million||215.57|
Orbital ATK’s rivals have higher revenue and earnings than Orbital ATK. Orbital ATK 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.
This is a summary of recent ratings for Orbital ATK and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orbital ATK Competitors||411||1959||2341||89||2.44|
Orbital ATK presently has a consensus target price of $120.07, indicating a potential downside of 9.17%. As a group, “Aerospace & Defense” companies have a potential upside of 10.60%. Given Orbital ATK’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Orbital ATK has less favorable growth aspects than its rivals.
Orbital ATK rivals 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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