Reviewing StandardAero (NYSE:SARO) and BWX Technologies (NYSE:BWXT)

BWX Technologies (NYSE:BWXT) and StandardAero (NYSE:SARO) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Insider and Institutional Ownership

94.4% of BWX Technologies shares are held by institutional investors. 0.6% of BWX Technologies shares are held by insiders. Comparatively, 2.1% of StandardAero shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

BWX Technologies has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, StandardAero has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations for BWX Technologies and StandardAero, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	0	5	10	1	2.75
StandardAero	0	6	7	2	2.73

BWX Technologies currently has a consensus target price of $205.00, suggesting a potential upside of 57.27%. StandardAero has a consensus target price of $33.45, suggesting a potential upside of 43.12%. Given BWX Technologies’ stronger consensus rating and higher possible upside, equities analysts clearly believe BWX Technologies is more favorable than StandardAero.

Earnings and Valuation

This table compares BWX Technologies and StandardAero”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$3.51 billion	3.40	$328.95 million	$3.86	33.77
StandardAero	$6.06 billion	1.28	$277.42 million	$0.97	24.10

BWX Technologies has higher earnings, but lower revenue than StandardAero. StandardAero is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares BWX Technologies and StandardAero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	10.11%	30.83%	9.34%
StandardAero	5.12%	14.52%	5.80%

Summary

BWX Technologies beats StandardAero on 11 of the 15 factors compared between the two stocks.

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.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.