Analyzing BWX Technologies (NYSE:BWXT) & Moog (NYSE:MOG.B)

BWX Technologies (NYSE:BWXT) and Moog (NYSE:MOG.B) are both large-cap aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Volatility & Risk

BWX Technologies has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Moog has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	10.20%	31.33%	9.62%
Moog	6.83%	16.11%	7.15%

Dividends

BWX Technologies pays an annual dividend of $1.08 per share and has a dividend yield of 0.6%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. BWX Technologies pays out 28.9% of its earnings in the form of a dividend. Moog pays out 13.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BWX Technologies has raised its dividend for 2 consecutive years. BWX Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

94.4% of BWX Technologies shares are owned by institutional investors. Comparatively, 8.1% of Moog shares are owned by institutional investors. 0.6% of BWX Technologies shares are owned by company insiders. Comparatively, 2.4% of Moog shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for BWX Technologies and Moog, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	1	4	8	2	2.73
Moog	0	0	0	0	0.00

BWX Technologies presently has a consensus target price of $228.00, indicating a potential upside of 17.78%. Given BWX Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe BWX Technologies is more favorable than Moog.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$3.20 billion	5.54	$328.95 million	$3.74	51.76
Moog	$3.86 billion	3.26	$235.03 million	$8.89	44.71

BWX Technologies has higher earnings, but lower revenue than Moog. Moog 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 Moog on 13 of the 18 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 Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.