Head to Head Contrast: Precision Castparts (PCP) versus The Competition

Precision Castparts (NYSE: PCP) is one of 42 public companies in the “Aerospace & Defense” industry, but how does it contrast to its peers? We will compare Precision Castparts to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Profitability

This table compares Precision Castparts and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Castparts 15.17% 12.16% 6.86%
Precision Castparts Competitors -6.88% 22.51% 3.40%

Valuation & Earnings

This table compares Precision Castparts and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Precision Castparts N/A N/A 24.65
Precision Castparts Competitors $8.89 billion $721.62 million 203.14

Precision Castparts’ peers have higher revenue and earnings than Precision Castparts. Precision Castparts 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.

Insider & Institutional Ownership

73.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 6.7% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Precision Castparts pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Precision Castparts pays out 1.3% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 35.9% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Precision Castparts and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Castparts 0 0 0 0 N/A
Precision Castparts Competitors 486 2189 2410 89 2.41

As a group, “Aerospace & Defense” companies have a potential upside of 13.92%. Given Precision Castparts’ peers higher probable upside, analysts plainly believe Precision Castparts has less favorable growth aspects than its peers.

Summary

Precision Castparts peers beat Precision Castparts on 6 of the 9 factors compared.

Precision Castparts Company Profile

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.

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