Critical Survey: L-3 Communications Holdings (LLL) vs. Its Peers
L-3 Communications Holdings (NYSE: LLL) is one of 46 public companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare L-3 Communications Holdings to similar companies based on the strength of its earnings, profitability, risk, institutional ownership, analyst recommendations, valuation and dividends.
Institutional & Insider Ownership
78.9% of L-3 Communications Holdings shares are held by institutional investors. Comparatively, 70.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 2.9% of L-3 Communications Holdings shares are held by insiders. Comparatively, 7.1% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk
L-3 Communications Holdings has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, L-3 Communications Holdings’ competitors have a beta of 1.06, suggesting that their average share price is 6% more volatile than the S&P 500.
This is a breakdown of recent recommendations for L-3 Communications Holdings and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|L-3 Communications Holdings||0||5||4||1||2.60|
|L-3 Communications Holdings Competitors||478||2129||2357||84||2.41|
L-3 Communications Holdings currently has a consensus price target of $193.89, indicating a potential upside of 3.58%. As a group, “Aerospace & Defense” companies have a potential upside of 3.80%. Given L-3 Communications Holdings’ competitors higher possible upside, analysts clearly believe L-3 Communications Holdings has less favorable growth aspects than its competitors.
Earnings and Valuation
This table compares L-3 Communications Holdings and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|L-3 Communications Holdings||$10.90 billion||$1.32 billion||25.75|
|L-3 Communications Holdings Competitors||$8.42 billion||$1.17 billion||80.67|
L-3 Communications Holdings has higher revenue and earnings than its competitors. L-3 Communications Holdings is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares L-3 Communications Holdings and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|L-3 Communications Holdings||5.22%||14.00%||5.59%|
|L-3 Communications Holdings Competitors||-4.90%||24.13%||3.92%|
L-3 Communications Holdings pays an annual dividend of $3.00 per share and has a dividend yield of 1.6%. L-3 Communications Holdings pays out 41.3% 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 38.0% of their earnings in the form of a dividend. L-3 Communications Holdings has raised its dividend for 13 consecutive years.
L-3 Communications Holdings beats its competitors on 9 of the 15 factors compared.
About L-3 Communications Holdings
L3 Technologies, Inc., formerly L-3 Communications Holdings, Inc., is a prime contractor in Intelligence, Surveillance and Reconnaissance (ISR) systems, aircraft sustainment, simulation and training, night vision and image intensification equipment and security and detection systems. The Company provides a broad range of communication and electronic systems and products used on military and commercial platforms. It operates through four segments: Electronic Systems, Aerospace Systems, Communication Systems and Sensor Systems. Electronic Systems provides a broad range of products and services for military and commercial customers in several niche markets across several business areas. Aerospace Systems delivers integrated solutions and provides engineering, modernization, upgrade, sustainment, and maintenance and logistics support. Communication Systems delivers products and services for the global communications market. Sensor Systems provides diverse sensor technologies.
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