L3 Technologies (NYSE:LLL) and Nokia Oyj (NYSE:NOK) are both large-cap aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
Volatility and Risk
L3 Technologies has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Nokia Oyj has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for L3 Technologies and Nokia Oyj, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
L3 Technologies presently has a consensus price target of $233.82, indicating a potential upside of 10.58%. Nokia Oyj has a consensus price target of $5.72, indicating a potential upside of 3.41%. Given L3 Technologies’ stronger consensus rating and higher probable upside, equities analysts plainly believe L3 Technologies is more favorable than Nokia Oyj.
Valuation and Earnings
This table compares L3 Technologies and Nokia Oyj’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|L3 Technologies||$9.57 billion||1.73||$677.00 million||$8.47||24.96|
|Nokia Oyj||$26.15 billion||1.19||-$1.69 billion||$0.37||14.95|
L3 Technologies has higher earnings, but lower revenue than Nokia Oyj. Nokia Oyj is trading at a lower price-to-earnings ratio than L3 Technologies, indicating that it is currently the more affordable of the two stocks.
This table compares L3 Technologies and Nokia Oyj’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
L3 Technologies pays an annual dividend of $3.20 per share and has a dividend yield of 1.5%. Nokia Oyj pays an annual dividend of $0.20 per share and has a dividend yield of 3.6%. L3 Technologies pays out 37.8% of its earnings in the form of a dividend. Nokia Oyj pays out 54.1% 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. L3 Technologies has raised its dividend for 14 consecutive years.
Insider and Institutional Ownership
81.7% of L3 Technologies shares are held by institutional investors. Comparatively, 6.8% of Nokia Oyj shares are held by institutional investors. 2.4% of L3 Technologies 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.
L3 Technologies beats Nokia Oyj on 15 of the 17 factors compared between the two stocks.
L3 Technologies Company Profile
L3 Technologies, Inc. provides aerospace systems, communication, electronic, and sensor systems used on military, homeland security, and commercial platforms in the United States and internationally. It offers simulation and training, night vision and image intensification equipment, and security and detection systems; and components, products, subsystems, and systems, as well as related services to military and commercial customers in various business areas, such as total training solutions, power and propulsion systems, aviation products, precision engagement systems, and security and detection systems. The company also provides fleet management support services, procurement, systems integration, sensor development, modifications, and periodic depot maintenance services; modernization and life extension maintenance upgrade and support services; aircraft fabrication and assembly of fixed and rotary wing aero structures, as well as avionics hardware and software systems; and prime mission systems integration and sensor development services. In addition, it offers network and communication systems, secure communications products, radio frequency components, satellite communication terminals and space, microwave and telemetry products, and secure data links. Further, the company provides multi-domain intelligence, surveillance, and reconnaissance mission solutions in various business areas, including space and sensor, airborne sensor, warrior sensor, maritime sensor, and intelligence and mission systems, as well as in advanced programs. It serves the United States (U.S.) Department of Defense and its prime contractors, the U.S. Government intelligence agencies, the U.S. Department of Homeland Security, foreign governments, and commercial customers. The company was formerly known as L-3 Communications Holdings, Inc. and changed its name to L3 Technologies, Inc. in December 2016. L3 Technologies, Inc. was founded in 1997 and is headquartered in New York, New York.
Nokia Oyj Company Profile
Nokia Corporation engages in the network and technology businesses worldwide. The company operates through four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Technologies. It provides mobile networking solutions, including hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals. It also offers fixed networking solutions, such as copper based solutions; fiber-to-the-home solutions, including Ethernet point-to-point, gigabit passive optical networks, EPON, and 10 gigabit next generation fiber technologies; fiber access products, solutions, and services; and public switched telephone network transformation, ultra-broadband network design, deployment and operation, site implementation and outside plant, and multi-vendor maintenance services. In addition, the company provides network implementation, care, and professional services for mobile networks; and managed services, such as network and service management, build-operate-transfer model, hosting, analytics, Internet of Things (IoT), cloud, and security operation services for the fixed, mobile, applications, Internet protocol (IP), and optical domains. Further, it offers network planning and optimization services to enhance the network performance and quality, and analytics-based services; and network architecture, integration, customization, and migration services. Additionally, the company provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems. Nokia Corporation has a collaboration agreement with Filtronic. The company was founded in 1865 and is headquartered in Espoo, Finland.
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