Analyzing Woodward (NASDAQ:WWD) and Environmental Tectonics (OTCMKTS:ETCC)

Woodward (NASDAQ:WWD) and Environmental Tectonics (OTCMKTS:ETCC) are both aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, dividends, earnings, profitability, valuation, institutional ownership and risk.

Profitability

This table compares Woodward and Environmental Tectonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woodward	12.39%	17.68%	9.35%
Environmental Tectonics	15.91%	281.64%	11.13%

Analyst Recommendations

This is a summary of current ratings for Woodward and Environmental Tectonics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woodward	0	3	9	1	2.85
Environmental Tectonics	0	0	0	0	0.00

Woodward presently has a consensus target price of $323.89, suggesting a potential upside of 1.35%. Given Woodward’s stronger consensus rating and higher possible upside, equities analysts plainly believe Woodward is more favorable than Environmental Tectonics.

Risk and Volatility

Woodward has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Environmental Tectonics has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Insider & Institutional Ownership

81.2% of Woodward shares are owned by institutional investors. 0.7% of Woodward shares are owned by insiders. Comparatively, 74.8% of Environmental Tectonics 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.

Valuation and Earnings

This table compares Woodward and Environmental Tectonics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woodward	$3.57 billion	5.38	$442.11 million	$7.19	44.45
Environmental Tectonics	$62.94 million	0.15	$13.06 million	$0.60	1.60

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

Summary

Woodward beats Environmental Tectonics on 11 of the 15 factors compared between the two stocks.

About Woodward

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates in two segments, Aerospace and Industrial. The Aerospace segment provides fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles, and flight deck controls, actuators, servocontrols, motors, and sensors for aircraft. These products are used on commercial and private aircraft and rotorcraft, as well as on military fixed-wing aircraft and rotorcraft, guided weapons, and other defense systems. It also provides aftermarket maintenance, repair and overhaul, and other services to commercial airlines, repair facilities, military depots, third party repair shops, and other end users. This segment sells its products to original equipment manufacturers (OEMs), tier-one suppliers, and contractors, as well as through aftermarket sales of components, such as provisioning spares and replacements. The Industrial segment offers actuators, valves, pumps, fuel injection systems, solenoids, ignition systems, speed controls, electronics and software, and sensors. These products are used on industrial gas turbines, steam turbines, compressors, and reciprocating engines. This segment sells its aftermarket products, and other related services to OEMs through an independent network of distributors, as well as directly to end users. The company was founded in 1870 and is headquartered in Fort Collins, Colorado.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.