Park Electrochemical (NYSE:PKE) and TransDigm Group (NYSE:TDG) are both aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Earnings & Valuation

This table compares Park Electrochemical and TransDigm Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Park Electrochemical $51.12 million 6.37 $113.54 million N/A N/A
TransDigm Group $5.22 billion 6.69 $889.77 million $16.96 38.49

TransDigm Group has higher revenue and earnings than Park Electrochemical.

Profitability

This table compares Park Electrochemical and TransDigm Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park Electrochemical 181.69% 6.96% 5.97%
TransDigm Group 16.06% -58.95% 6.75%

Risk & Volatility

Park Electrochemical has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, TransDigm Group has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.

Insider & Institutional Ownership

82.9% of Park Electrochemical shares are held by institutional investors. Comparatively, 98.6% of TransDigm Group shares are held by institutional investors. 8.4% of Park Electrochemical shares are held by insiders. Comparatively, 11.9% of TransDigm Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Park Electrochemical and TransDigm Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Electrochemical 0 0 0 0 N/A
TransDigm Group 1 3 9 0 2.62

TransDigm Group has a consensus price target of $607.27, indicating a potential downside of 7.12%. Given TransDigm Group’s higher possible upside, analysts clearly believe TransDigm Group is more favorable than Park Electrochemical.

Summary

TransDigm Group beats Park Electrochemical on 9 of the 12 factors compared between the two stocks.

About Park Electrochemical

Park Electrochemical Corp., through its subsidiaries, develops, manufactures, markets, and sells high-technology digital and radio frequency/microwave printed circuit material products primarily for the telecommunications and Internet infrastructure, enterprise, and military/aerospace markets. It also designs, develops, and manufactures advanced composite materials, primary and secondary structures and assemblies, and low-volume tooling products for the aerospace markets. The company's advanced electronics materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnect systems, including backplanes, high speed/low loss multilayers, and high density interconnects. It markets and sells its electronics materials to independent printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries. The company has operations in North America, Europe, and Asia. Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.

About TransDigm Group

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The company operates in three segments: Power & Control, Airframe, and Non-aviation. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, databus and power controls, hoists, winches and lifting devices, and cargo loading and handling systems. It serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, and cargo delivery systems. It serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, and refueling systems for heavy equipment. It serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is headquartered in Cleveland, Ohio.

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