Comparing Moog (NYSE:MOG.B) & Magellan Aerospace (OTCMKTS:MALJF)

Magellan Aerospace (OTCMKTS:MALJF) and Moog (NYSE:MOG.B) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional and Insider Ownership

3.9% of Magellan Aerospace shares are held by institutional investors. Comparatively, 8.1% of Moog shares are held by institutional investors. 2.4% of Moog shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Magellan Aerospace and Moog”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magellan Aerospace	N/A	N/A	N/A	$0.95	25.24
Moog	$3.86 billion	3.15	$235.03 million	$11.76	32.67

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

Dividends

Magellan Aerospace pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Magellan Aerospace pays out 15.7% of its earnings in the form of a dividend. Moog pays out 10.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and target prices for Magellan Aerospace and Moog, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magellan Aerospace	0	0	1	0	3.00
Moog	0	0	0	0	0.00

Profitability

This table compares Magellan Aerospace and Moog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magellan Aerospace	N/A	N/A	N/A
Moog	8.73%	17.67%	7.94%

Summary

Moog beats Magellan Aerospace on 9 of the 12 factors compared between the two stocks.

About Magellan Aerospace

Magellan Aerospace Corporation, through its subsidiaries, engineers and manufactures aeroengine and aerostructure components for aerospace markets in Canada, the United States, and Europe. The company offers aero engine products, such as laser welded honeycomb and filament wound tubes, frames, compressor components, bypass ducts, hot section components, and aeroengine and helicopter drive shafts, as well as other flight safety critical machined components, including discs, seals, and spacers; and aerostructures comprising landing gear systems, wing ribs, spars and skins, bulkheads and fuselage components, tailcone assemblies, composite wing and fairing structures, horizontal and vertical stabilizers, plug and nozzle, exhaust systems, crown modules, and vane boxes and transition ducts. It also designs, engineers, and manufactures assemblies and components, such as stage rocket motors, solid propellant rocket motors, and rocket weapon systems; wire strike protection systems for helicopter safety; space solutions, including small satellite bus platforms and satellite subsystem equipment, as well as offers services for satellite assembly, integration, and testing; and aluminum and magnesium alloy sand castings, such as engine mounted accessory gearbox housings, helicopter power transmission housings, auxiliary power unit inlet and gearbox housings, engine front inlet and intermediate cases, engine front frames and fan cases, pump and accessory drive housings, and environmental control housings. In addition, the company offers maintenance, repair, and overhaul for various engine and components MRO, as well as lifecycle management services to logistics, fleet management, and engineering services. Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.