Critical Survey: BWX Technologies (NYSE:BWXT) & Loar (NYSE:LOAR)

BWX Technologies (NYSE:BWXTGet Free Report) and Loar (NYSE:LOARGet Free Report) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Earnings and Valuation

This table compares BWX Technologies and Loar”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BWX Technologies $3.06 billion 5.38 $281.94 million $3.33 54.01
Loar $402.82 million 15.26 $22.23 million $0.66 99.49

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

Analyst Recommendations

This is a summary of current ratings for BWX Technologies and Loar, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BWX Technologies 1 3 7 3 2.86
Loar 0 1 3 1 3.00

BWX Technologies currently has a consensus target price of $184.83, suggesting a potential upside of 2.77%. Loar has a consensus target price of $96.00, suggesting a potential upside of 46.21%. Given Loar’s stronger consensus rating and higher probable upside, analysts clearly believe Loar is more favorable than BWX Technologies.

Risk & Volatility

BWX Technologies has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, Loar has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
BWX Technologies 10.28% 30.61% 10.77%
Loar 13.33% 6.45% 4.85%

Institutional & Insider Ownership

94.4% of BWX Technologies shares are owned by institutional investors. 0.5% of BWX Technologies shares are owned by insiders. Comparatively, 22.6% of Loar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

BWX Technologies beats Loar on 9 of the 15 factors compared between the two stocks.

About BWX Technologies

(Get Free Report)

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 Loar

(Get Free Report)

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.

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