Critical Review: MDA Space (MDA) & The Competition

MDA Space (NYSE:MDA) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare MDA Space to similar companies based on the strength of its analyst recommendations, valuation, profitability, risk, earnings, dividends and institutional ownership.

Insider and Institutional Ownership

50.1% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares MDA Space and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDA Space	5.68%	9.42%	4.20%
MDA Space Competitors	-303.28%	-30.44%	-4.16%

Analyst Recommendations

This is a breakdown of recent recommendations for MDA Space and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDA Space	0	3	6	1	2.80
MDA Space Competitors	2034	8008	12338	537	2.50

MDA Space presently has a consensus price target of $50.00, suggesting a potential upside of 60.15%. As a group, “Aerospace & Defense” companies have a potential upside of 36.11%. Given MDA Space’s stronger consensus rating and higher possible upside, equities analysts plainly believe MDA Space is more favorable than its competitors.

Earnings & Valuation

This table compares MDA Space and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MDA Space	$1.17 billion	$77.65 million	57.81
MDA Space Competitors	$8.46 billion	$577.31 million	29.26

MDA Space’s competitors have higher revenue and earnings than MDA Space. MDA Space is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

MDA Space beats its competitors on 8 of the 12 factors compared.

MDA Space Company Profile

MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.