Contrasting BWX Technologies (BWXT) and AeroVironment (AVAV)

BWX Technologies (NYSE: BWXT) and AeroVironment (NASDAQ:AVAV) are both computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Analyst Ratings

This is a summary of current ratings and target prices for BWX Technologies and AeroVironment, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BWX Technologies 0 1 4 0 2.80
AeroVironment 0 4 0 0 2.00

BWX Technologies currently has a consensus price target of $51.40, indicating a potential downside of 5.36%. AeroVironment has a consensus price target of $37.00, indicating a potential downside of 24.41%. Given BWX Technologies’ stronger consensus rating and higher probable upside, equities research analysts clearly believe BWX Technologies is more favorable than AeroVironment.

Profitability

This table compares BWX Technologies and AeroVironment’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BWX Technologies 11.81% 107.13% 12.81%
AeroVironment 7.22% 5.40% 4.83%

Insider & Institutional Ownership

97.0% of BWX Technologies shares are held by institutional investors. Comparatively, 77.6% of AeroVironment shares are held by institutional investors. 0.8% of BWX Technologies shares are held by insiders. Comparatively, 11.0% of AeroVironment shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

BWX Technologies pays an annual dividend of $0.44 per share and has a dividend yield of 0.8%. AeroVironment does not pay a dividend. BWX Technologies pays out 23.3% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares BWX Technologies and AeroVironment’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
BWX Technologies $1.62 billion 3.33 $322.78 million $1.89 28.74
AeroVironment $272.42 million 4.19 $29.48 million $0.84 58.27

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

Risk and Volatility

BWX Technologies has a beta of 0.46, suggesting that its stock price is 54% less volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Summary

BWX Technologies beats AeroVironment on 11 of the 16 factors compared between the two stocks.

About BWX Technologies

BWX Technologies, Inc. is a manufacturer of nuclear components and a service provider. The Company’s businesses focus on the design, engineering and manufacture of precision naval nuclear components, reactors and nuclear fuel for the United States Government. Its segments include Nuclear Operations, Technical Services, Nuclear Energy and Other. It provides uranium processing and environmental site restoration services, as well as a range of products and services to customers in the nuclear power industry. Nuclear Operations engineers, designs and manufactures precision naval nuclear components and reactors for the United States Department of Energy/National Nuclear Security Administration’s Naval Nuclear Propulsion Program. Technical Services provides various services to the United States Government. Nuclear Energy designs, licenses, manufactures and delivers commercial nuclear steam generators, pressure vessels, reactor components, heat exchangers and other auxiliary equipment.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD). The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers.

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