Critical Analysis: Precision Castparts Corp. (PCP) and The Competition

Precision Castparts Corp. (NYSE: PCP) is one of 43 public companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare Precision Castparts Corp. to related companies based on the strength of its institutional ownership, profitability, dividends, valuation, analyst recommendations, earnings and risk.

Institutional and Insider Ownership

71.9% of shares of all “Aerospace & Defense” companies are held by institutional investors. 5.9% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Precision Castparts Corp. and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Precision Castparts Corp. N/A N/A 24.65
Precision Castparts Corp. Competitors $8.89 billion $722.08 million 190.14

Precision Castparts Corp.’s competitors have higher revenue and earnings than Precision Castparts Corp.. Precision Castparts Corp. is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Precision Castparts Corp. and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Castparts Corp. 15.17% 12.16% 6.86%
Precision Castparts Corp. Competitors -6.80% 22.01% 3.20%

Analyst Recommendations

This is a summary of recent ratings and price targets for Precision Castparts Corp. and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Castparts Corp. 0 0 0 0 N/A
Precision Castparts Corp. Competitors 481 2188 2395 84 2.40

As a group, “Aerospace & Defense” companies have a potential upside of 15.64%. Given Precision Castparts Corp.’s competitors higher possible upside, analysts plainly believe Precision Castparts Corp. has less favorable growth aspects than its competitors.

Dividends

Precision Castparts Corp. pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Precision Castparts Corp. pays out 1.3% 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 35.2% of their earnings in the form of a dividend.

Summary

Precision Castparts Corp. competitors beat Precision Castparts Corp. on 6 of the 9 factors compared.

Precision Castparts Corp. Company Profile

Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.

Receive News & Ratings for Precision Castparts Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Precision Castparts Corp. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply