Bae Systems (OTCMKTS:BAESY) vs. Curtiss-Wright (NYSE:CW) Head to Head Analysis

Curtiss-Wright (NYSE:CW) and Bae Systems (OTCMKTS:BAESY) are both large-cap aerospace companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Curtiss-Wright and Bae Systems, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curtiss-Wright	0	2	5	0	2.71
Bae Systems	1	1	4	0	2.50

Curtiss-Wright presently has a consensus target price of $468.14, indicating a potential downside of 13.92%. Given Curtiss-Wright’s stronger consensus rating and higher possible upside, equities analysts plainly believe Curtiss-Wright is more favorable than Bae Systems.

Profitability

This table compares Curtiss-Wright and Bae Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curtiss-Wright	13.66%	18.34%	9.35%
Bae Systems	N/A	N/A	N/A

Institutional & Insider Ownership

82.7% of Curtiss-Wright shares are owned by institutional investors. Comparatively, 0.2% of Bae Systems shares are owned by institutional investors. 0.6% of Curtiss-Wright shares 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.

Earnings & Valuation

This table compares Curtiss-Wright and Bae Systems”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curtiss-Wright	$3.12 billion	6.57	$404.98 million	$11.85	45.89
Bae Systems	$28.48 billion	2.95	$2.50 billion	N/A	N/A

Bae Systems has higher revenue and earnings than Curtiss-Wright.

Risk & Volatility

Curtiss-Wright has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500. Comparatively, Bae Systems has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Dividends

Curtiss-Wright pays an annual dividend of $0.96 per share and has a dividend yield of 0.2%. Bae Systems pays an annual dividend of $2.16 per share and has a dividend yield of 1.9%. Curtiss-Wright pays out 8.1% of its earnings in the form of a dividend. Curtiss-Wright has increased its dividend for 8 consecutive years.

Summary

Curtiss-Wright beats Bae Systems on 11 of the 15 factors compared between the two stocks.

About Curtiss-Wright

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.

About Bae Systems

BAE Systems plc provides defense, aerospace, and security solutions worldwide. The company operates through five segments: Electronic Systems, Platforms & Services, Air, Maritime, and Cyber & Intelligence. The Electronic Systems segment offers electronic warfare systems, navigation systems, electro-optical sensors, military and commercial digital engine and flight controls, precision guidance and seeker solutions, military communication systems and data links, persistent surveillance capabilities, space electronics, and electric drive propulsion systems. The Cyber & Intelligence segment provides solutions to modernize, maintain, and test cyber-harden aircraft, radars, missile systems, and mission applications that detect and deter threats to national security; systems engineering, integration, and sustainment services for critical weapons systems, C5ISR, and cyber security; and solutions and services to intelligence and federal/civilian agencies. It also offers data intelligence solutions to protect nations, businesses, and citizens. The Platforms & Services segment manufactures, and upgrades combat vehicles, weapons, and munitions, as well as provides naval ship repair services and the management of government-owned ammunition plants. The Air segment develops future combat air systems and falconworks. The Maritime segment provides maritime and land activities, including submarine, ship build, and support programmes. BAE Systems plc was founded in 1970 and is headquartered in Camberley, the United Kingdom.