Critical Survey: Spirit Aerosystems Holdings (SPR) and Transdigm Group (NYSE:TDG)
Spirit Aerosystems Holdings (NYSE: SPR) and Transdigm Group (NYSE:TDG) are both mid-cap aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitabiliy, dividends, valuation, analyst recommendations, risk and earnings.
Spirit Aerosystems Holdings pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Transdigm Group does not pay a dividend. Spirit Aerosystems Holdings pays out 11.2% of its earnings in the form of a dividend.
Insider & Institutional Ownership
98.7% of Spirit Aerosystems Holdings shares are held by institutional investors. 0.3% of Spirit Aerosystems Holdings shares are held by insiders. Comparatively, 10.5% of Transdigm Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Spirit Aerosystems Holdings and Transdigm Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Spirit Aerosystems Holdings||$6.81 billion||1.08||$915.60 million||$3.57||17.08|
|Transdigm Group||$3.36 billion||4.43||$1.56 billion||$8.48||33.78|
Transdigm Group has higher revenue, but lower earnings than Spirit Aerosystems Holdings. Spirit Aerosystems Holdings is trading at a lower price-to-earnings ratio than Transdigm Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Spirit Aerosystems Holdings and Transdigm Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spirit Aerosystems Holdings||2||7||5||0||2.21|
Spirit Aerosystems Holdings presently has a consensus price target of $63.82, suggesting a potential upside of 4.64%. Transdigm Group has a consensus price target of $284.21, suggesting a potential downside of 0.78%. Given Spirit Aerosystems Holdings’ higher probable upside, equities analysts clearly believe Spirit Aerosystems Holdings is more favorable than Transdigm Group.
This table compares Spirit Aerosystems Holdings and Transdigm Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spirit Aerosystems Holdings||6.46%||28.51%||10.05%|
Risk and Volatility
Spirit Aerosystems Holdings has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Transdigm Group has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.
Transdigm Group beats Spirit Aerosystems Holdings on 9 of the 16 factors compared between the two stocks.
About Spirit Aerosystems Holdings
Spirit AeroSystems Holdings, Inc. is a non-original equipment manufacturer (OEM), aircraft parts designer and manufacturer of commercial aero-structures. The Company is also a supplier of aero-structures. The Company operates through three segments: Fuselage Systems, Propulsion Systems and Wing Systems. The Fuselage Systems segment includes the development, production and marketing of forward, mid and rear fuselage sections and systems. The Propulsion Systems segment includes the development, production and marketing of struts/pylons, nacelles (including thrust reversers) and related engine structural components. The Wing Systems segment includes the development, production and marketing of wings and wing components (including flight control surfaces), and other miscellaneous structural parts. The Company’s maintenance, repair and overhaul (MRO) services include repair stations that provide complete on-site repair and overhaul.
About Transdigm Group
TransDigm Group Incorporated is a designer, producer and supplier of engineered aircraft components for use on commercial and military aircraft in service. The Company operates through three segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. The Airframe segment includes operations that primarily develop and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Its product offerings include mechanical/electro-mechanical actuators and controls, engineered latching and locking devices, and seat belts and safety restraints.
Receive News & Ratings for Spirit Aerosystems Holdings Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Spirit Aerosystems Holdings Inc. and related companies with MarketBeat.com's FREE daily email newsletter.