Financial Analysis: Triumph Group (TGI) versus Mercury Systems (MRCY)
Triumph Group (NYSE: TGI) and Mercury Systems (NASDAQ:MRCY) are both aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
This is a summary of recent recommendations for Triumph Group and Mercury Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Triumph Group presently has a consensus target price of $30.64, suggesting a potential upside of 18.06%. Mercury Systems has a consensus target price of $42.20, suggesting a potential downside of 11.38%. Given Triumph Group’s higher possible upside, equities analysts clearly believe Triumph Group is more favorable than Mercury Systems.
Volatility & Risk
Triumph Group has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, Mercury Systems has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
Insider and Institutional Ownership
99.8% of Triumph Group shares are owned by institutional investors. Comparatively, 96.7% of Mercury Systems shares are owned by institutional investors. 2.8% of Triumph Group shares are owned by company insiders. Comparatively, 4.3% of Mercury Systems shares are owned 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.
Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Mercury Systems does not pay a dividend. Triumph Group pays out -12.1% of its earnings in the form of a dividend.
This table compares Triumph Group and Mercury Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Triumph Group and Mercury Systems’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Triumph Group||$3.42 billion||0.38||$400.81 million||($1.32)||-19.66|
|Mercury Systems||$408.59 million||5.61||$77.23 million||$0.58||82.10|
Triumph Group has higher revenue and earnings than Mercury Systems. Triumph Group is trading at a lower price-to-earnings ratio than Mercury Systems, indicating that it is currently the more affordable of the two stocks.
Triumph Group beats Mercury Systems on 9 of the 15 factors compared between the two stocks.
Triumph Group Company Profile
Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.
Mercury Systems Company Profile
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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