Rolls-Royce Holdings PLC (OTCMKTS:RYCEY – Get Free Report) and BWX Technologies (NYSE:BWXT – Get Free Report) are both large-cap aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.
Valuation and Earnings
This table compares Rolls-Royce Holdings PLC and BWX Technologies”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Rolls-Royce Holdings PLC | $24.16 billion | 5.57 | $3.22 billion | N/A | N/A |
BWX Technologies | $2.70 billion | 6.20 | $281.94 million | $3.20 | 57.28 |
Volatility and Risk
Rolls-Royce Holdings PLC has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.
Institutional and Insider Ownership
0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. Comparatively, 94.4% of BWX Technologies shares are owned by institutional investors. 0.5% of BWX Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Rolls-Royce Holdings PLC and BWX Technologies’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Rolls-Royce Holdings PLC | N/A | N/A | N/A |
BWX Technologies | 10.28% | 30.61% | 10.77% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Rolls-Royce Holdings PLC and BWX Technologies, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Rolls-Royce Holdings PLC | 0 | 2 | 1 | 1 | 2.75 |
BWX Technologies | 1 | 3 | 5 | 2 | 2.73 |
BWX Technologies has a consensus price target of $160.83, suggesting a potential downside of 12.27%. Given BWX Technologies’ higher probable upside, analysts clearly believe BWX Technologies is more favorable than Rolls-Royce Holdings PLC.
Dividends
Rolls-Royce Holdings PLC pays an annual dividend of $0.14 per share and has a dividend yield of 0.9%. BWX Technologies pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. BWX Technologies pays out 31.3% of its earnings in the form of a dividend. BWX Technologies has raised its dividend for 2 consecutive years.
Summary
BWX Technologies beats Rolls-Royce Holdings PLC on 10 of the 16 factors compared between the two stocks.
About Rolls-Royce Holdings PLC
Rolls-Royce Holdings plc develops and delivers complex power and propulsion solutions for air, sea, and land in the United Kingdom and internationally. The company operates through four segments: Civil Aerospace, Defence, Power Systems, and New Markets. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. The New Markets segment develops, manufactures, and sells small modular reactor and new electrical power solutions. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.
About BWX Technologies
BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.
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