Woodward (NASDAQ: WWD) and Newport Corp (NASDAQ:NEWP) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, analyst recommendations, institutional ownership, risk and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for Woodward and Newport Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodward 0 4 5 0 2.56
Newport Corp 0 0 0 0 N/A

Woodward currently has a consensus target price of $74.75, suggesting a potential upside of 2.96%. Given Woodward’s higher possible upside, analysts plainly believe Woodward is more favorable than Newport Corp.

Earnings and Valuation

This table compares Woodward and Newport Corp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Woodward $2.08 billion 2.14 $342.57 million $3.17 22.90
Newport Corp N/A N/A N/A N/A N/A

Woodward has higher revenue and earnings than Newport Corp.

Institutional and Insider Ownership

71.3% of Woodward shares are owned by institutional investors. 5.9% of Woodward shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Newport Corp does not pay a dividend. Woodward pays out 15.8% of its earnings in the form of a dividend.

Profitability

This table compares Woodward and Newport Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woodward 9.67% 16.12% 7.67%
Newport Corp 6.37% 10.63% 6.60%

Summary

Woodward beats Newport Corp on 9 of the 10 factors compared between the two stocks.

About Woodward

Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.

About Newport Corp

Newport Corporation is a supplier of technology products and systems. The Company offers its products and services to a range of industries, including scientific research, microelectronics, defense and security, life and health sciences, and industrial markets. The Company operates through three business segments: Photonics Group, which includes photonics instruments and systems, vibration isolation systems and subsystems, precision positioning systems and subsystems, optical components for research applications, optical hardware, and three-dimensional non-contact measurement sensors and equipment; Lasers Group, which offers a portfolio of laser technology products and services, including ultrafast lasers and amplifiers, fiber lasers, diode-pumped solid-state lasers, and high-energy pulsed lasers and tunable lasers, and Optics Group, which offers precision optics and lens assemblies, thin-film filters and coatings, replicated mirrors, and ruled and holographic diffraction gratings.

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