Analyzing Moog (MOG.A) and Mercury Systems (MRCY)
Moog (NYSE: MOG.A) and Mercury Systems (NASDAQ:MRCY) are both mid-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.
Risk and Volatility
Moog has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500. Comparatively, Mercury Systems has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
This table compares Moog and Mercury Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
83.0% of Moog shares are owned by institutional investors. Comparatively, 97.5% of Mercury Systems shares are owned by institutional investors. 2.4% of Moog shares are owned by insiders. Comparatively, 4.3% of Mercury Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current ratings for Moog and Mercury Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Moog presently has a consensus price target of $75.00, suggesting a potential upside of Infinity. Mercury Systems has a consensus price target of $42.20, suggesting a potential downside of 9.29%. Given Moog’s higher probable upside, equities analysts clearly believe Moog is more favorable than Mercury Systems.
Earnings and Valuation
This table compares Moog and Mercury Systems’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Mercury Systems||$408.59 million||5.46||$73.56 million||$0.58||80.21|
Mercury Systems has higher revenue and earnings than Moog. Moog is trading at a lower price-to-earnings ratio than Mercury Systems, indicating that it is currently the more affordable of the two stocks.
Mercury Systems beats Moog on 7 of the 12 factors compared between the two stocks.
Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. 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. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.
About Mercury Systems
Mercury Systems, Inc. is a commercial provider of secure processing subsystems designed and made in the United States. The Company’s solutions support a range of defense and intelligence programs. Its technologies include embedded processing modules and subsystems, radio frequency (RF) and microwave multi-function assemblies, as well as subsystems, and RF and microwave components. It designs and builds RF and microwave components and subsystems for the electronic warfare (EW), signals intelligence (SIGINT) and other communications requirements and applications. It offers analyst services and systems engineering support, consulting, maintenance and other support, testing and installation. It designs, markets and sells software and middleware environments for the development and execution of signal and image processing applications on a range of heterogeneous and multi-computing platforms. It also offers solutions in mission computing, safety-critical avionics and platform management.
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