Hexcel (NYSE: HXL) and Rogers (NYSE:ROG) are both mid-cap aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk & Volatility
Hexcel has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Rogers has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.
This table compares Hexcel and Rogers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Hexcel pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. Rogers does not pay a dividend. Hexcel pays out 18.7% of its earnings in the form of a dividend. Hexcel has increased its dividend for 2 consecutive years.
This is a summary of current ratings and price targets for Hexcel and Rogers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Hexcel presently has a consensus target price of $66.00, indicating a potential upside of 1.12%. Rogers has a consensus target price of $160.00, indicating a potential upside of 33.85%. Given Rogers’ stronger consensus rating and higher possible upside, analysts plainly believe Rogers is more favorable than Hexcel.
Earnings & Valuation
This table compares Hexcel and Rogers’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hexcel||$1.97 billion||2.97||$284.00 million||$2.68||24.35|
|Rogers||$821.04 million||2.67||$80.45 million||$5.76||20.75|
Hexcel has higher revenue and earnings than Rogers. Rogers is trading at a lower price-to-earnings ratio than Hexcel, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.7% of Hexcel shares are held by institutional investors. Comparatively, 96.6% of Rogers shares are held by institutional investors. 1.3% of Hexcel shares are held by company insiders. Comparatively, 1.0% of Rogers shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Hexcel beats Rogers on 10 of the 17 factors compared between the two stocks.
Hexcel Corporation is a composites company. The Company develops, manufactures, and markets lightweight, structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered honeycomb and structures, for use in Commercial Aerospace, Space and Defense and Industrial markets. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment consists of its carbon fiber, specialty reinforcements, resins, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines. The Engineered Products segment consists of lightweight structures, molded components, engineered core and honeycomb products with added functionality. Its products are used in a range of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, and recreational products.
Rogers Corporation designs, develops, manufactures, and sells engineered materials and components worldwide. The company's Advanced Connectivity Solutions segment offers circuit materials and solutions for connectivity applications in wireless communications infrastructure, automotive, connected devices, wired infrastructure, consumer electronics, and aerospace/defense. Its Elastomeric Material Solutions segment provides elastomeric material solutions for critical cushioning, sealing, impact protection, and vibration management applications, including general industrial, portable electronics, consumer goods, automotive, mass transportation, construction, and printing applications. The company's Power Electronics Solutions segment offers ceramic substrate materials for power module applications, laminated bus bars for power inverter and high power interconnect applications, and micro-channel coolers. Its Other segment provides elastomeric components for applications in ground transportation, office equipment, consumer, and other markets; elastomer floats for level sensing in fuel tanks, motors, and storage tanks; and inverters for portable communications and automotive markets. The company also manufactures and sells polytetrafluoroethylene, ultra-high molecular weight polyethylene films, pressure sensitive tapes, and specialty products for the industrial, aerospace, automotive, and electronics markets. Rogers Corporation was founded in 1832 and is headquartered in Chandler, Arizona.
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