Astronics Corporation (ATRO) vs. Raytheon (RTN) Head-To-Head Comparison

Astronics Corporation (NASDAQ: ATRO) and Raytheon (NYSE:RTN) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Astronics Corporation and Raytheon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Astronics Corporation 5.80% 10.29% 5.69%
Raytheon 8.77% 20.98% 7.34%

Volatility and Risk

Astronics Corporation has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Raytheon has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Institutional and Insider Ownership

64.9% of Astronics Corporation shares are held by institutional investors. Comparatively, 74.2% of Raytheon shares are held by institutional investors. 16.5% of Astronics Corporation shares are held by insiders. Comparatively, 0.2% of Raytheon shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Astronics Corporation and Raytheon’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Astronics Corporation $633.12 million 1.70 $48.42 million $1.18 31.81
Raytheon $24.07 billion 2.22 $2.21 billion $7.43 24.83

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

Analyst Ratings

This is a summary of current ratings for Astronics Corporation and Raytheon, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Astronics Corporation 0 1 2 0 2.67
Raytheon 0 2 13 0 2.87

Astronics Corporation currently has a consensus price target of $38.33, indicating a potential upside of 2.11%. Raytheon has a consensus price target of $199.67, indicating a potential upside of 8.24%. Given Raytheon’s stronger consensus rating and higher probable upside, analysts clearly believe Raytheon is more favorable than Astronics Corporation.

Dividends

Raytheon pays an annual dividend of $3.19 per share and has a dividend yield of 1.7%. Astronics Corporation does not pay a dividend. Raytheon pays out 42.9% of its earnings in the form of a dividend. Astronics Corporation has increased its dividend for 12 consecutive years.

Summary

Raytheon beats Astronics Corporation on 12 of the 17 factors compared between the two stocks.

Astronics Corporation Company Profile

Astronics Corporation is a supplier of products to the aerospace, defense, electronics and semiconductor industries. The Company’s products and services include electrical power generation, distribution and motion systems, lighting and safety systems, avionics products, aircraft structures, systems certification and automated test systems. The Company operates through two segments: Aerospace and Test Systems. The Aerospace segment designs and manufactures products for the global aerospace industry. Its product lines include lighting and safety systems, electrical power generation, distribution and motions systems, aircraft structures, avionics products, systems certification and other products. The Test Systems segment designs, develops, manufactures and maintains automated test systems that support the semiconductor, aerospace, communications and weapons test systems, as well as training and simulation devices for both commercial and military applications.

Raytheon Company Profile

Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity. The Company operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS), and Forcepoint. The IDS segment develops and produces sensors and mission systems. The IIS segment provides a range of technical and professional services to intelligence, defense, federal and commercial customers. The MS segment is a developer, integrator and producer of missile and combat systems. The SAS segment is engaged in the design, development and manufacture of integrated sensor and communication systems for missions. The Forcepoint segment develops cybersecurity products.

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