Precision Castparts (NYSE: PCP) and DigitalGlobe (NYSE:DGI) are both industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.
This table compares Precision Castparts and DigitalGlobe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Precision Castparts and DigitalGlobe’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DigitalGlobe||$725.40 million||0.00||$26.50 million||$0.02||N/A|
DigitalGlobe has higher revenue and earnings than Precision Castparts. DigitalGlobe is trading at a lower price-to-earnings ratio than Precision Castparts, indicating that it is currently the more affordable of the two stocks.
Precision Castparts pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. DigitalGlobe does not pay a dividend. Precision Castparts pays out 1.3% of its earnings in the form of a dividend.
Institutional and Insider Ownership
0.1% of DigitalGlobe shares are owned by institutional investors. 2.3% of DigitalGlobe shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Precision Castparts and DigitalGlobe, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DigitalGlobe has a consensus target price of $34.00, indicating a potential upside of Infinity. Given DigitalGlobe’s higher possible upside, analysts clearly believe DigitalGlobe is more favorable than Precision Castparts.
DigitalGlobe beats Precision Castparts on 6 of the 11 factors compared between the two stocks.
About Precision Castparts
Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.
DigitalGlobe, Inc. is a provider of Earth imagery, data and analysis. The Company’s imagery solutions and other services support a range of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The Company’s imagery solutions and other services are sourced from its own satellite constellation and third-party providers. The Company sells its products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners and direct enterprise sales to its United States Government and Diversified Commercial customer groups. The Company offers products consisting of imagery from its constellation of satellites, and provides geospatial products and services. The Company processes its imagery to varying levels according to its customers’ specifications and delivers its products using the distribution method.
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