Head-To-Head Review: Spirit Aerosystems Holdings (SPR) and Ducommun (DCO)
Spirit Aerosystems Holdings (NYSE: SPR) and Ducommun (NYSE:DCO) are both aerospace companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.
Insider and Institutional Ownership
98.6% of Spirit Aerosystems Holdings shares are held by institutional investors. Comparatively, 81.2% of Ducommun shares are held by institutional investors. 0.3% of Spirit Aerosystems Holdings shares are held by company insiders. Comparatively, 8.2% of Ducommun shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Spirit Aerosystems Holdings and Ducommun’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spirit Aerosystems Holdings||4.97%||30.82%||10.70%|
Spirit Aerosystems Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 0.6%. Ducommun does not pay a dividend. Spirit Aerosystems Holdings pays out 14.6% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Spirit Aerosystems Holdings and Ducommun’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Spirit Aerosystems Holdings||$6.80 billion||1.25||$739.20 million||$2.74||26.17|
|Ducommun||$552.29 million||0.54||$51.72 million||$1.20||21.98|
Spirit Aerosystems Holdings has higher revenue and earnings than Ducommun. Ducommun is trading at a lower price-to-earnings ratio than Spirit Aerosystems Holdings, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Spirit Aerosystems Holdings has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for Spirit Aerosystems Holdings and Ducommun, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spirit Aerosystems Holdings||2||7||8||0||2.35|
Spirit Aerosystems Holdings presently has a consensus price target of $69.36, indicating a potential downside of 3.28%. Ducommun has a consensus price target of $37.00, indicating a potential upside of 40.31%. Given Ducommun’s stronger consensus rating and higher possible upside, analysts plainly believe Ducommun is more favorable than Spirit Aerosystems Holdings.
Spirit Aerosystems Holdings beats Ducommun on 12 of the 16 factors compared between the two stocks.
Spirit Aerosystems Holdings Company Profile
Spirit AeroSystems Holdings, Inc. is a non-original equipment manufacturer (OEM), aircraft parts designer and manufacturer of commercial aero-structures. The Company is also a supplier of aero-structures. The Company operates through three segments: Fuselage Systems, Propulsion Systems and Wing Systems. The Fuselage Systems segment includes the development, production and marketing of forward, mid and rear fuselage sections and systems. The Propulsion Systems segment includes the development, production and marketing of struts/pylons, nacelles (including thrust reversers) and related engine structural components. The Wing Systems segment includes the development, production and marketing of wings and wing components (including flight control surfaces), and other miscellaneous structural parts. The Company’s maintenance, repair and overhaul (MRO) services include repair stations that provide complete on-site repair and overhaul.
Ducommun Company Profile
Ducommun Incorporated is a global provider of engineering and manufacturing services for various products and failure applications used primarily in the aerospace, defense, industrial, natural resources, medical and other industries. The Company is a solution-based provider, offering a range of value-added products and services in its primary businesses of electronics, structures and integrated solutions. The Company operates through two segments: Electronic Systems (ES) and Structural Systems (SS). The ES has over three product offerings in electronics manufacturing for various applications, including complex cable assemblies and interconnect systems, printed circuit board assemblies, and electronic, electromechanical and mechanical assemblies. The SS segment offers over three product offerings to support a customer base, including commercial aircraft, military fixed-wing aircraft, and military and commercial rotary-wing aircraft.
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