Rocket Lab (NASDAQ:RKLB) versus Teledyne Technologies (NYSE:TDY) Head to Head Survey

Teledyne Technologies (NYSE:TDY) and Rocket Lab (NASDAQ:RKLB) are both large-cap aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Volatility and Risk

Teledyne Technologies has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Rocket Lab has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500.

Institutional and Insider Ownership

91.6% of Teledyne Technologies shares are owned by institutional investors. Comparatively, 71.8% of Rocket Lab shares are owned by institutional investors. 1.5% of Teledyne Technologies shares are owned by insiders. Comparatively, 11.9% of Rocket Lab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Teledyne Technologies and Rocket Lab, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	3	6	0	2.67
Rocket Lab	1	6	7	1	2.53

Teledyne Technologies presently has a consensus target price of $627.88, suggesting a potential downside of 2.94%. Rocket Lab has a consensus target price of $72.92, suggesting a potential upside of 10.46%. Given Rocket Lab’s higher probable upside, analysts clearly believe Rocket Lab is more favorable than Teledyne Technologies.

Profitability

This table compares Teledyne Technologies and Rocket Lab’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teledyne Technologies	14.63%	10.08%	6.85%
Rocket Lab	-35.64%	-27.26%	-12.21%

Earnings and Valuation

This table compares Teledyne Technologies and Rocket Lab”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$6.12 billion	4.97	$894.80 million	$18.91	34.21
Rocket Lab	$436.21 million	80.83	-$190.18 million	($0.38)	-173.71

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

Summary

Teledyne Technologies beats Rocket Lab on 9 of the 15 factors compared between the two stocks.

About Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.

About Rocket Lab

Rocket Lab USA, Inc., a space company, provides launch services and space systems solutions for the space and defense industries. The company provides launch services, spacecraft design services, spacecraft components, spacecraft manufacturing, and other spacecraft and on-orbit management solutions; and constellation management services, as well as designs and manufactures small and medium-class rockets. It also designs, manufactures, and sells Electron, a reusable orbital-class small rocket; and the Photon satellite platforms, as well as developing the Neutron 8-ton payload class launch vehicle; conducts remote launch activities; and designs and manufactures a range of components and subsystems for the Photon family of spacecraft and broader merchant spacecraft components. The company serves commercial, aerospace prime contractors, and government customers. Rocket Lab USA, Inc. was founded in 2006 and is headquartered in Long Beach, California.