L3 Technologies (NYSE: LLL) and Goodrich (NYSE:GR) are both large-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.
Institutional & Insider Ownership
77.4% of L3 Technologies shares are owned by institutional investors. 2.9% of L3 Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
L3 Technologies has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Goodrich has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
L3 Technologies pays an annual dividend of $3.00 per share and has a dividend yield of 1.4%. Goodrich does not pay a dividend. L3 Technologies pays out 35.5% of its earnings in the form of a dividend. L3 Technologies has raised its dividend for 14 consecutive years.
This is a summary of recent ratings and target prices for L3 Technologies and Goodrich, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
L3 Technologies currently has a consensus price target of $213.00, indicating a potential upside of 1.91%. Given L3 Technologies’ higher possible upside, research analysts clearly believe L3 Technologies is more favorable than Goodrich.
Valuation and Earnings
This table compares L3 Technologies and Goodrich’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|L3 Technologies||$9.57 billion||1.71||$677.00 million||$8.45||24.73|
L3 Technologies has higher revenue and earnings than Goodrich. Goodrich is trading at a lower price-to-earnings ratio than L3 Technologies, indicating that it is currently the more affordable of the two stocks.
This table compares L3 Technologies and Goodrich’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
L3 Technologies beats Goodrich on 14 of the 15 factors compared between the two stocks.
L3 Technologies Company Profile
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.
Goodrich Company Profile
Goodrich Corporation (Goodrich) is a supplier of aerospace components, systems and services to the commercial and general aviation airplane markets. Goodrich also is a supplier of systems and products to the defense and space markets. Its business is conducted globally with manufacturing, service and sales undertaken in various locations worldwide. Goodrich’s operates in three business segments: the Actuation and Landing Systems segment, the Nacelles and Interior Systems segment and the Electronic Systems segment. Its key products include actuation systems, landing gear, aircraft wheels and brakes, nacelles, interiors, engine control systems, intelligence surveillance and reconnaissance systems, sensor systems and power systems. On May 12, 2011, it acquired Microtecnica S.r.l. On September 30, 2011, the Company acquired Winslow Marine Products Corporation. In July 2012, United Technologies Corporation acquired Goodrich.
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