Reviewing Astrotech (NASDAQ:ASTC) and Transdigm Group (NYSE:TDG)

Transdigm Group (NYSE:TDG) and Astrotech (NASDAQ:ASTC) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.

Risk and Volatility

Transdigm Group has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Astrotech has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Profitability

This table compares Transdigm Group and Astrotech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Transdigm Group	21.69%	-31.91%	9.53%
Astrotech	-1,069.89%	-59.71%	-51.64%

Analyst Recommendations

This is a breakdown of current ratings for Transdigm Group and Astrotech, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Transdigm Group	0	4	13	1	2.83
Astrotech	1	0	0	0	1.00

Transdigm Group presently has a consensus target price of $1,596.60, indicating a potential upside of 14.70%. Given Transdigm Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Transdigm Group is more favorable than Astrotech.

Valuation and Earnings

This table compares Transdigm Group and Astrotech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Transdigm Group	$8.83 billion	8.88	$2.07 billion	$32.08	43.39
Astrotech	$1.05 million	5.53	-$13.85 million	($8.45)	-0.39

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

Insider and Institutional Ownership

95.8% of Transdigm Group shares are owned by institutional investors. Comparatively, 24.4% of Astrotech shares are owned by institutional investors. 4.1% of Transdigm Group shares are owned by insiders. Comparatively, 16.8% of Astrotech shares are owned 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.

Summary

Transdigm Group beats Astrotech on 14 of the 15 factors compared between the two stocks.

About Transdigm Group

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.