Reviewing United Technologies (UTX) and Triumph Group (TGI)
United Technologies (NYSE: UTX) and Triumph Group (NYSE:TGI) are both multi-sector conglomerates companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Valuation and Earnings
This table compares United Technologies and Triumph Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|United Technologies||$57.24 billion||1.71||$5.06 billion||$6.45||19.04|
|Triumph Group||$3.53 billion||0.37||-$42.95 million||($2.13)||-12.51|
United Technologies pays an annual dividend of $2.80 per share and has a dividend yield of 2.3%. Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. United Technologies pays out 43.4% of its earnings in the form of a dividend. Triumph Group pays out -7.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Triumph Group has increased its dividend for 5 consecutive years.
Risk and Volatility
United Technologies has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Triumph Group has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.
This is a summary of current ratings and target prices for United Technologies and Triumph Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
United Technologies presently has a consensus price target of $125.68, suggesting a potential upside of 2.34%. Triumph Group has a consensus price target of $33.11, suggesting a potential upside of 24.24%. Given Triumph Group’s higher probable upside, analysts plainly believe Triumph Group is more favorable than United Technologies.
Insider & Institutional Ownership
80.2% of United Technologies shares are owned by institutional investors. Comparatively, 99.8% of Triumph Group shares are owned by institutional investors. 0.2% of United Technologies shares are owned by company insiders. Comparatively, 2.8% of Triumph Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares United Technologies and Triumph Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
United Technologies beats Triumph Group on 10 of the 17 factors compared between the two stocks.
United Technologies Company Profile
United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Otis operates as an elevator and escalator manufacturing, installation and service company. UTC Climate, Controls & Security segment is engaged in providing heating, ventilating, air conditioning (HVAC) and refrigeration solutions. The Pratt & Whitney segment supplies aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney segment provides fleet management services and aftermarket maintenance, repair and overhaul services. The UTC Aerospace Systems segment provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.
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.
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