Rockwell Collins (COL) versus Its Rivals Critical Review
Rockwell Collins (NYSE: COL) is one of 44 public companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare Rockwell Collins to similar businesses based on the strength of its earnings, dividends, analyst recommendations, valuation, risk, institutional ownership and profitability.
Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Rockwell Collins pays out 26.0% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.5% and pay out 36.1% of their earnings in the form of a dividend. Rockwell Collins has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
77.8% of Rockwell Collins shares are owned by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 1.5% of Rockwell Collins shares are owned by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Rockwell Collins and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rockwell Collins Competitors||-5.04%||24.59%||3.95%|
This is a summary of current ratings and price targets for Rockwell Collins and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rockwell Collins Competitors||472||2091||2316||82||2.40|
Rockwell Collins currently has a consensus target price of $124.18, indicating a potential downside of 8.02%. As a group, “Aerospace & Defense” companies have a potential upside of 3.42%. Given Rockwell Collins’ peers stronger consensus rating and higher probable upside, analysts plainly believe Rockwell Collins has less favorable growth aspects than its peers.
Volatility & Risk
Rockwell Collins has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500. Comparatively, Rockwell Collins’ peers have a beta of 1.06, meaning that their average stock price is 6% more volatile than the S&P 500.
Earnings and Valuation
This table compares Rockwell Collins and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Rockwell Collins||$6.07 billion||$1.35 billion||26.63|
|Rockwell Collins Competitors||$8.56 billion||$1.20 billion||81.73|
Rockwell Collins’ peers have higher revenue, but lower earnings than Rockwell Collins. Rockwell Collins is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Rockwell Collins peers beat Rockwell Collins on 9 of the 15 factors compared.
Rockwell Collins Company Profile
Rockwell Collins, Inc. designs, produces and supports communications and aviation systems for commercial and military customers. The Company provides information management services through voice and data communication networks and solutions across the world. The Company operates through three segments: Commercial Systems, Government Systems and Information Management Services. The Commercial Systems segment supplies aviation electronics systems, products and services to customers located throughout the world. The Government Systems segment provides a range of electronic products, systems and services to customers including the United States Department of Defense, various ministries of defense, other government agencies and defense contractors around the world. The Information Management Services segment provides communications services, systems integration and security solutions across the aviation, airport, rail and nuclear security markets.
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