Financial Survey: Curtiss-Wright (NYSE:CW) & Loar (NYSE:LOAR)

Loar (NYSE:LOAR) and Curtiss-Wright (NYSE:CW) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Loar and Curtiss-Wright’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	9.44%	9.65%	5.12%
Curtiss-Wright	14.86%	21.08%	10.38%

Volatility & Risk

Loar has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. Comparatively, Curtiss-Wright has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Loar and Curtiss-Wright, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	3	4	0	2.57
Curtiss-Wright	0	4	3	0	2.43

Loar currently has a consensus price target of $86.40, indicating a potential upside of 9.89%. Curtiss-Wright has a consensus price target of $636.75, indicating a potential upside of 32.48%. Given Curtiss-Wright’s higher possible upside, analysts plainly believe Curtiss-Wright is more favorable than Loar.

Earnings and Valuation

This table compares Loar and Curtiss-Wright”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$496.28 million	14.84	$72.15 million	$0.63	124.80
Curtiss-Wright	$3.74 billion	4.66	$484.23 million	$14.99	32.06

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

Insider & Institutional Ownership

82.7% of Curtiss-Wright shares are held by institutional investors. 20.1% of Loar shares are held by company insiders. Comparatively, 0.5% of Curtiss-Wright shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Curtiss-Wright beats Loar on 9 of the 14 factors compared between the two stocks.

About Loar

Loar Holdings Inc. designs and manufactures engineered components and systems for the aerospace and defense industries. Its products are used in commercial, business and general aviation, as well as military aircraft. The company’s portfolio includes components and equipment for aircraft engines, landing gear, electrical systems, cabin interiors and other aircraft applications. Loar sells to original equipment manufacturers and supports the aviation aftermarket with replacement parts and related products.

About Curtiss-Wright

Curtiss-Wright Corporation is a diversified industrial company that develops and manufactures engineered products and provides services for the aerospace, defense, power-generation and general industrial markets. Its offerings include actuation and control systems, sensors, valves and pumps, and embedded computing and electronics. The company serves customers around the world, including aircraft manufacturers and operators, defense contractors, government agencies, and commercial nuclear power providers.