Reviewing Astronics (ATRO) & Rockwell Collins (COL)

Astronics (NASDAQ: ATRO) and Rockwell Collins (NYSE:COL) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Astronics and Rockwell Collins’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Astronics $633.12 million 1.83 $48.42 million $1.18 35.14
Rockwell Collins $6.82 billion 3.26 $705.00 million $4.78 28.37

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

Dividends

Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Astronics does not pay a dividend. Rockwell Collins pays out 27.6% of its earnings in the form of a dividend. Astronics has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Astronics and Rockwell Collins, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astronics 0 1 2 0 2.67
Rockwell Collins 1 15 3 0 2.11

Astronics presently has a consensus target price of $42.00, suggesting a potential upside of 1.28%. Rockwell Collins has a consensus target price of $125.35, suggesting a potential downside of 7.57%. Given Astronics’ stronger consensus rating and higher possible upside, equities analysts clearly believe Astronics is more favorable than Rockwell Collins.

Insider & Institutional Ownership

65.8% of Astronics shares are owned by institutional investors. Comparatively, 72.2% of Rockwell Collins shares are owned by institutional investors. 16.5% of Astronics shares are owned by company insiders. Comparatively, 1.1% of Rockwell Collins shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Astronics has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Rockwell Collins has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500.

Profitability

This table compares Astronics and Rockwell Collins’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Astronics 5.80% 10.29% 5.69%
Rockwell Collins 10.33% 22.00% 6.90%

Summary

Rockwell Collins beats Astronics on 10 of the 17 factors compared between the two stocks.

About Astronics

Astronics Corporation is a supplier of products to the aerospace, defense, electronics and semiconductor industries. The Company’s products and services include electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification and automated test systems. The Company operates through two segments: Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. Its product lines include lighting and safety systems, electrical power generation, distribution and motions systems, aircraft structures, avionics products, systems certification and other products. The Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems, as well as training and simulation devices for both commercial and military applications.

About Rockwell Collins

Rockwell Collins, Inc. designs, produces and supports communications and aviation systems for commercial and military customers. The Company provides information management services through voice and data communication networks and solutions across the world. The Company operates through three segments: Commercial Systems, Government Systems and Information Management Services. The Commercial Systems segment supplies aviation electronics systems, products and services to customers located throughout the world. The Government Systems segment provides a range of electronic products, systems and services to customers including the United States Department of Defense, various ministries of defense, other government agencies and defense contractors around the world. The Information Management Services segment provides communications services, systems integration and security solutions across the aviation, airport, rail and nuclear security markets.

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