Critical Analysis: Astronics (OTCMKTS:ATROB) & Saab (OTCMKTS:SAABY)

Astronics (OTCMKTS:ATROB) and Saab (OTCMKTS:SAABY) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Profitability

This table compares Astronics and Saab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astronics	-0.37%	29.65%	10.15%
Saab	7.17%	13.23%	4.94%

Earnings and Valuation

This table compares Astronics and Saab”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astronics	$795.43 million	2.30	-$16.22 million	($0.09)	-570.00
Saab	$6.03 billion	4.84	$394.58 million	$0.62	43.99

Saab has higher revenue and earnings than Astronics. Astronics is trading at a lower price-to-earnings ratio than Saab, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Astronics and Saab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astronics	0	0	0	0	0.00
Saab	2	1	0	1	2.00

Risk and Volatility

Astronics has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Saab has a beta of -0.18, indicating that its stock price is 118% less volatile than the S&P 500.

Summary

Saab beats Astronics on 8 of the 11 factors compared between the two stocks.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.

About Saab

Saab AB (publ) provides products, services, and solutions for military defense, aviation, and civil security markets worldwide. The company operates through Aeronautics, Dynamics, Surveillance, Kockums, and Combitech segments. The company develops military aviation technology, as well as conducts studies on manned and unmanned aircraft. It also provides ground combat weapons, missile systems, torpedoes, unmanned underwater vehicles, training and simulation systems, and signature management systems for armed forces; and niche products for the civil and defense market, such as underwater vehicles for the offshore industry. In addition, the company offers solutions for safety and security, surveillance and decision support, and threat detection, location, and protection, including airborne, ground-based and naval radar, electronic warfare, and combat systems, as well as C4I solutions. Additionally, it provides submarines with the Stirling system for air independent propulsion, surface combatants, mine hunting systems, and autonomous vessels; and systems development, systems integration, information security, systems security, communications, mechanics, and technical product information and logistics. Saab AB (publ) was incorporated in 1937 and is headquartered in Stockholm, Sweden.