Analyzing Woodward (WWD) and The Competition

Woodward (NASDAQ: WWD) is one of 56 public companies in the “Industrial Machinery & Equipment” industry, but how does it weigh in compared to its peers? We will compare Woodward to similar companies based off the strength of its institutional ownership, risk, profitability, valuation, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Woodward and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodward 0 4 5 0 2.56
Woodward Competitors 389 1894 1905 36 2.38

Woodward presently has a consensus price target of $74.75, indicating a potential upside of 5.52%. All “Industrial Machinery & Equipment” companies have a potential upside of 6.94%. Given Woodward’s peers higher possible upside, analysts plainly believe Woodward has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Woodward and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Woodward $2.08 billion $342.57 million 22.35
Woodward Competitors $2.27 billion $360.80 million 22.40

Woodward’s peers have higher revenue and earnings than Woodward. Woodward is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently the more affordable than other companies in its industry.

Institutional & Insider Ownership

71.3% of Woodward shares are owned by institutional investors. Comparatively, 78.4% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 5.9% of Woodward shares are owned by insiders. Comparatively, 5.5% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Woodward pays out 15.8% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.6% and pay out 35.6% of their earnings in the form of a dividend.

Profitability

This table compares Woodward and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woodward 9.67% 16.12% 7.67%
Woodward Competitors 1.47% 12.25% 4.63%

Volatility and Risk

Woodward has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, Woodward’s peers have a beta of 1.21, indicating that their average share price is 21% more volatile than the S&P 500.

Summary

Woodward beats its peers on 8 of the 15 factors compared.

About Woodward

Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.

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