Precision Castparts Corp. (NYSE: PCP) and Elbit Systems (NASDAQ:ESLT) are both mid-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

11.1% of Elbit Systems shares are held by institutional investors. 0.8% of Elbit Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Precision Castparts Corp. and Elbit Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Castparts Corp. 0 0 0 0 N/A
Elbit Systems 0 2 0 0 2.00

Elbit Systems has a consensus price target of $110.00, indicating a potential downside of 26.09%. Given Elbit Systems’ higher probable upside, analysts clearly believe Elbit Systems is more favorable than Precision Castparts Corp..

Profitability

This table compares Precision Castparts Corp. and Elbit Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Castparts Corp. 15.17% 12.16% 6.86%
Elbit Systems 7.23% 16.38% 5.88%

Dividends

Elbit Systems pays an annual dividend of $1.76 per share and has a dividend yield of 1.2%. Precision Castparts Corp. does not pay a dividend. Elbit Systems pays out 31.5% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Precision Castparts Corp. and Elbit Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Precision Castparts Corp. N/A N/A N/A N/A N/A
Elbit Systems $3.30 billion 1.93 $408.99 million $5.58 26.67

Elbit Systems has higher revenue and earnings than Precision Castparts Corp..

Summary

Elbit Systems beats Precision Castparts Corp. on 7 of the 10 factors compared between the two stocks.

About Precision Castparts Corp.

Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.

About Elbit Systems

Elbit Systems Ltd. is an international technology company engaged in a range of programs across the world. The Company develops and supplies a portfolio of airborne, land and naval systems and products for defense, homeland security and commercial aviation applications. Its systems and products are installed on new platforms, and it also performs platform modernization programs. In addition, it provides a range of support services. The Company’s activities include military aircraft and helicopter systems; helmet mounted systems; commercial aviation systems and aerostructures; unmanned aircraft and unmanned surface vessels; land vehicle systems; command, control, communications, computer and intelligence (C4I) systems; intelligence and cyber systems; electro-optic and countermeasures systems; electronic warfare and signal intelligence systems, and various commercial activities. It operates primarily in the defense and homeland security arenas.

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