Huntington Ingalls Industries (HII) and BWX Technologies (BWXT) Head to Head Analysis
Huntington Ingalls Industries (NYSE: HII) and BWX Technologies (NYSE:BWXT) are both mid-cap aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Valuation & Earnings
This table compares Huntington Ingalls Industries and BWX Technologies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Huntington Ingalls Industries||$7.03 billion||1.22||$1.01 billion||$11.83||15.72|
|BWX Technologies||$1.61 billion||2.93||$316.03 million||$1.83||26.05|
Huntington Ingalls Industries has higher revenue and earnings than BWX Technologies. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Huntington Ingalls Industries and BWX Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Huntington Ingalls Industries||2||4||2||0||2.00|
Huntington Ingalls Industries presently has a consensus target price of $195.17, indicating a potential upside of 4.94%. BWX Technologies has a consensus target price of $51.40, indicating a potential upside of 7.82%. Given BWX Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe BWX Technologies is more favorable than Huntington Ingalls Industries.
This table compares Huntington Ingalls Industries and BWX Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Huntington Ingalls Industries||7.91%||29.05%||7.79%|
Risk and Volatility
Huntington Ingalls Industries has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.
Insider and Institutional Ownership
87.5% of Huntington Ingalls Industries shares are owned by institutional investors. Comparatively, 96.5% of BWX Technologies shares are owned by institutional investors. 2.2% of Huntington Ingalls Industries shares are owned by insiders. Comparatively, 0.8% of BWX Technologies shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Huntington Ingalls Industries pays an annual dividend of $2.40 per share and has a dividend yield of 1.3%. BWX Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.9%. Huntington Ingalls Industries pays out 20.3% of its earnings in the form of a dividend. BWX Technologies pays out 24.0% 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. Huntington Ingalls Industries has raised its dividend for 4 consecutive years. Huntington Ingalls Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
BWX Technologies beats Huntington Ingalls Industries on 9 of the 17 factors compared between the two stocks.
Huntington Ingalls Industries Company Profile
Huntington Ingalls Industries, Inc. is a military shipbuilding company and a provider of professional services to partners in government and industry. The Company’s business consists of the design, construction, repair and maintenance of nuclear-powered ships and non-nuclear ships for the United States Navy and coastal defense surface ships for the United States Coast Guard, as well as the refueling and overhaul and inactivation of nuclear-powered ships for the United States Navy. It operates through three segments: Ingalls Shipbuilding (Ingalls), Newport News Shipbuilding (Newport News) and Technical Solutions. Its Ingalls segment includes its non-nuclear ship design, construction, repair and maintenance businesses. Its Newport News includes all of its nuclear ship design, construction, overhaul, refueling, and repair and maintenance businesses. Its Technical Solutions segment provides a range of professional services to the governmental, energy, and oil and gas markets.
BWX Technologies Company Profile
BWX Technologies, Inc. is a manufacturer of nuclear components and a service provider. The Company’s businesses focus on the design, engineering and manufacture of precision naval nuclear components, reactors and nuclear fuel for the United States Government. Its segments include Nuclear Operations, Technical Services, Nuclear Energy and Other. It provides uranium processing and environmental site restoration services, as well as a range of products and services to customers in the nuclear power industry. Nuclear Operations engineers, designs and manufactures precision naval nuclear components and reactors for the United States Department of Energy/National Nuclear Security Administration’s Naval Nuclear Propulsion Program. Technical Services provides various services to the United States Government. Nuclear Energy designs, licenses, manufactures and delivers commercial nuclear steam generators, pressure vessels, reactor components, heat exchangers and other auxiliary equipment.
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