Goodrich (NYSE: GR) and Triumph Group (NYSE:TGI) are both aerospace & defense – nec companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Goodrich does not pay a dividend. Triumph Group pays out -7.5% of its earnings in the form of a dividend.
This is a summary of current recommendations and price targets for Goodrich and Triumph Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Triumph Group has a consensus target price of $33.11, suggesting a potential upside of 18.68%. Given Triumph Group’s higher probable upside, analysts clearly believe Triumph Group is more favorable than Goodrich.
Earnings and Valuation
This table compares Goodrich and Triumph Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Triumph Group||$3.53 billion||0.39||-$42.95 million||($2.13)||-13.10|
Goodrich has higher earnings, but lower revenue than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than Goodrich, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
99.8% of Triumph Group shares are owned by institutional investors. 2.8% of Triumph Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Goodrich has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Triumph Group has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.
This table compares Goodrich and Triumph Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Triumph Group beats Goodrich on 10 of the 13 factors compared between the two stocks.
Goodrich Corporation (Goodrich) is a supplier of aerospace components, systems and services to the commercial and general aviation airplane markets. Goodrich also is a supplier of systems and products to the defense and space markets. Its business is conducted globally with manufacturing, service and sales undertaken in various locations worldwide. Goodrich’s operates in three business segments: the Actuation and Landing Systems segment, the Nacelles and Interior Systems segment and the Electronic Systems segment. Its key products include actuation systems, landing gear, aircraft wheels and brakes, nacelles, interiors, engine control systems, intelligence surveillance and reconnaissance systems, sensor systems and power systems. On May 12, 2011, it acquired Microtecnica S.r.l. On September 30, 2011, the Company acquired Winslow Marine Products Corporation. In July 2012, United Technologies Corporation acquired Goodrich.
About Triumph Group
Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.
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