Textron (NYSE:TXT) & Conrad Industries (OTCMKTS:CNRD) Head to Head Contrast

Textron (NYSE:TXT) and Conrad Industries (OTCMKTS:CNRD) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Textron and Conrad Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Textron	0	6	6	0	2.50
Conrad Industries	0	0	0	0	0.00

Textron presently has a consensus target price of $92.6667, suggesting a potential upside of 13.80%. Given Textron’s stronger consensus rating and higher probable upside, research analysts clearly believe Textron is more favorable than Conrad Industries.

Insider & Institutional Ownership

86.0% of Textron shares are held by institutional investors. Comparatively, 0.6% of Conrad Industries shares are held by institutional investors. 1.7% of Textron shares are held by company insiders. Comparatively, 31.5% of Conrad Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Textron and Conrad Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Textron	5.80%	14.26%	6.12%
Conrad Industries	5.30%	20.25%	11.34%

Earnings and Valuation

This table compares Textron and Conrad Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Textron	$13.70 billion	1.06	$824.00 million	$4.42	18.42
Conrad Industries	$303.41 million	0.38	$11.23 million	($0.34)	-67.15

Textron has higher revenue and earnings than Conrad Industries. Conrad Industries is trading at a lower price-to-earnings ratio than Textron, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Textron has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Conrad Industries has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Summary

Textron beats Conrad Industries on 11 of the 14 factors compared between the two stocks.

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

About Conrad Industries

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.