Eaton (NYSE: ETN) and Moog (NYSE:MOG.A) are both industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Insider & Institutional Ownership
78.9% of Eaton shares are owned by institutional investors. Comparatively, 85.8% of Moog shares are owned by institutional investors. 0.5% of Eaton shares are owned by company insiders. Comparatively, 1.6% of Moog shares are owned by company 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.
Eaton has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Moog has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.
This table compares Eaton and Moog’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Eaton and Moog, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Eaton presently has a consensus price target of $86.71, indicating a potential upside of 12.24%. Moog has a consensus price target of $98.50, indicating a potential upside of 19.86%. Given Moog’s higher possible upside, analysts clearly believe Moog is more favorable than Eaton.
Eaton pays an annual dividend of $2.64 per share and has a dividend yield of 3.4%. Moog does not pay a dividend. Eaton pays out 56.8% of its earnings in the form of a dividend. Eaton has raised its dividend for 8 consecutive years.
Earnings and Valuation
This table compares Eaton and Moog’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eaton||$20.40 billion||1.67||$2.99 billion||$4.65||16.62|
|Moog||$2.50 billion||1.18||$141.28 million||$3.90||21.07|
Eaton has higher revenue and earnings than Moog. Eaton is trading at a lower price-to-earnings ratio than Moog, indicating that it is currently the more affordable of the two stocks.
Eaton beats Moog on 11 of the 17 factors compared between the two stocks.
Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, residential products, single phase power quality products, emergency lighting and fire detection products, wiring devices, structural support systems, and circuit protection and lighting products. The company's Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution equipment, power reliability equipment, and services. Its Hydraulics segment offers various power products, controls and sensing products, fluid conveyance products, filtration systems solutions, industrial drum and disc brakes, and golf grips. The company's Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use. Its Vehicle segment designs, manufactures, markets, and supplies drivetrain and powertrain systems, and critical components, including transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, fuel vapor components, fluid connectors, and conveyance products. The company serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers of heavy, medium, and light-duty trucks, SUVs, CUVs, passenger cars, and agricultural equipment. Eaton Corporation plc was founded in 1916 and is based in Dublin, Ireland.
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.
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