Moog (NYSE: MOG) and Hexcel (NYSE:HXL) are both mid-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Volatility and Risk
Moog has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Hexcel has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
97.7% of Hexcel shares are held by institutional investors. 2.1% of Hexcel shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings for Moog and Hexcel, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Moog currently has a consensus target price of $82.00, indicating a potential downside of 0.94%. Hexcel has a consensus target price of $64.78, indicating a potential upside of 0.40%. Given Hexcel’s stronger consensus rating and higher possible upside, analysts clearly believe Hexcel is more favorable than Moog.
This table compares Moog and Hexcel’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Moog and Hexcel’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hexcel||$1.97 billion||2.94||$284.00 million||$3.09||20.88|
Hexcel has higher revenue and earnings than Moog. Hexcel is trading at a lower price-to-earnings ratio than Moog, indicating that it is currently the more affordable of the two stocks.
Hexcel pays an annual dividend of $0.50 per share and has a dividend yield of 0.8%. Moog does not pay a dividend. Hexcel pays out 16.2% of its earnings in the form of a dividend. Moog has raised its dividend for 2 consecutive years.
Hexcel beats Moog on 10 of the 14 factors compared between the two stocks.
Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.
Hexcel Corporation is a composites company. The Company develops, manufactures, and markets lightweight, structural materials, including carbon fibers, specialty reinforcements, prepregs and other fiber-reinforced matrix materials, honeycomb, adhesives, engineered honeycomb and structures, for use in Commercial Aerospace, Space and Defense and Industrial markets. It operates in two segments: Composite Materials and Engineered Products. The Composite Materials segment consists of its carbon fiber, specialty reinforcements, resins, prepregs and other fiber-reinforced matrix materials, and honeycomb core product lines. The Engineered Products segment consists of lightweight structures, molded components, engineered core and honeycomb products with added functionality. Its products are used in a range of end applications, such as commercial and military aircraft, space launch vehicles and satellites, wind turbine blades, automotive, and recreational products.
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