Astrotech (NASDAQ:ASTC) vs. Woodward (NASDAQ:WWD) Critical Analysis

Astrotech (NASDAQ:ASTC) and Woodward (NASDAQ:WWD) are both aerospace companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Institutional & Insider Ownership

24.4% of Astrotech shares are held by institutional investors. Comparatively, 81.2% of Woodward shares are held by institutional investors. 14.9% of Astrotech shares are held by company insiders. Comparatively, 0.8% of Woodward shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Astrotech and Woodward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,536.99%	-46.37%	-42.51%
Woodward	11.32%	16.57%	8.53%

Analyst Ratings

This is a summary of recent ratings for Astrotech and Woodward, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	0	0	0	0	0.00
Woodward	0	5	6	0	2.55

Woodward has a consensus price target of $253.11, indicating a potential upside of 6.30%. Given Woodward’s stronger consensus rating and higher probable upside, analysts clearly believe Woodward is more favorable than Astrotech.

Earnings and Valuation

This table compares Astrotech and Woodward”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.66 million	4.97	-$11.67 million	($8.42)	-0.58
Woodward	$3.32 billion	4.30	$372.97 million	$6.32	37.68

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

Risk & Volatility

Astrotech has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Woodward has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Summary

Woodward beats Astrotech on 12 of the 14 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

About Woodward

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.