Comparing Ducommun (NYSE:DCO) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY)

Ducommun (NYSE:DCO) and Rolls-Royce Holdings PLC (OTCMKTS:RYCEY) are both aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Volatility & Risk

Ducommun has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500. Comparatively, Rolls-Royce Holdings PLC has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ducommun and Rolls-Royce Holdings PLC”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ducommun	$824.73 million	2.65	-$33.94 million	($2.31)	-62.74
Rolls-Royce Holdings PLC	$27.96 billion	4.88	$7.70 billion	N/A	N/A

Rolls-Royce Holdings PLC has higher revenue and earnings than Ducommun.

Insider and Institutional Ownership

92.2% of Ducommun shares are owned by institutional investors. Comparatively, 0.1% of Rolls-Royce Holdings PLC shares are owned by institutional investors. 5.0% of Ducommun shares are owned by 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 Ducommun and Rolls-Royce Holdings PLC’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ducommun	-4.11%	8.47%	4.89%
Rolls-Royce Holdings PLC	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current ratings and target prices for Ducommun and Rolls-Royce Holdings PLC, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ducommun	0	2	4	1	2.86
Rolls-Royce Holdings PLC	0	2	2	1	2.80

Ducommun currently has a consensus target price of $144.50, indicating a potential downside of 0.30%. Given Ducommun’s stronger consensus rating and higher possible upside, equities analysts clearly believe Ducommun is more favorable than Rolls-Royce Holdings PLC.

Summary

Ducommun beats Rolls-Royce Holdings PLC on 7 of the 12 factors compared between the two stocks.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.

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.