BWX Technologies (NYSE:BWXT – Get Free Report) and StandardAero (NYSE:SARO – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for BWX Technologies and StandardAero, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| BWX Technologies | 0 | 5 | 10 | 1 | 2.75 |
| StandardAero | 0 | 6 | 7 | 2 | 2.73 |
BWX Technologies presently has a consensus price target of $205.00, suggesting a potential upside of 57.27%. StandardAero has a consensus price target of $33.45, suggesting a potential upside of 43.12%. Given BWX Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe BWX Technologies is more favorable than StandardAero.
Volatility & Risk
BWX Technologies has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, StandardAero has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.
Profitability
This table compares BWX Technologies and StandardAero’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| BWX Technologies | 10.11% | 30.83% | 9.34% |
| StandardAero | 5.12% | 14.52% | 5.80% |
Insider & Institutional Ownership
94.4% of BWX Technologies shares are held by institutional investors. 0.6% of BWX Technologies shares are held by insiders. Comparatively, 2.1% of StandardAero shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares BWX Technologies and StandardAero”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| BWX Technologies | $3.51 billion | 3.40 | $328.95 million | $3.86 | 33.77 |
| StandardAero | $6.06 billion | 1.28 | $277.42 million | $0.97 | 24.10 |
BWX Technologies has higher earnings, but lower revenue than StandardAero. StandardAero is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
BWX Technologies beats StandardAero on 11 of the 15 factors compared between the two stocks.
About BWX Technologies
BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.
About StandardAero
StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.
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