Huntington Ingalls Industries (HII) vs. Its Rivals Financial Analysis

Huntington Ingalls Industries (NYSE:HII) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare Huntington Ingalls Industries to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations for Huntington Ingalls Industries and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Ingalls Industries	0	5	4	1	2.60
Huntington Ingalls Industries Competitors	2148	8220	12702	577	2.50

Huntington Ingalls Industries presently has a consensus price target of $359.38, indicating a potential upside of 13.28%. As a group, “Aerospace & Defense” companies have a potential upside of 25.59%. Given Huntington Ingalls Industries’ rivals higher probable upside, analysts plainly believe Huntington Ingalls Industries has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

90.5% of Huntington Ingalls Industries shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 0.8% of Huntington Ingalls Industries shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Huntington Ingalls Industries pays an annual dividend of $5.64 per share and has a dividend yield of 1.8%. Huntington Ingalls Industries pays out 30.4% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.1% and pay out 39.1% of their earnings in the form of a dividend. Huntington Ingalls Industries has raised its dividend for 13 consecutive years. Huntington Ingalls Industries is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Huntington Ingalls Industries and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Ingalls Industries	5.42%	13.95%	5.76%
Huntington Ingalls Industries Competitors	-289.55%	-47.45%	-4.31%

Risk and Volatility

Huntington Ingalls Industries has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500. Comparatively, Huntington Ingalls Industries’ rivals have a beta of 1.34, suggesting that their average stock price is 34% more volatile than the S&P 500.

Earnings & Valuation

This table compares Huntington Ingalls Industries and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Huntington Ingalls Industries	$13.53 billion	$605.00 million	17.07
Huntington Ingalls Industries Competitors	$8.41 billion	$569.01 million	24.75

Huntington Ingalls Industries has higher revenue and earnings than its rivals. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Huntington Ingalls Industries beats its rivals on 10 of the 15 factors compared.

Huntington Ingalls Industries Company Profile

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.