Financial Contrast: Alabama Aircraft Industries (OTCMKTS:AAIIQ) & Woodward (NASDAQ:WWD)

Woodward (NASDAQ:WWD) and Alabama Aircraft Industries (OTCMKTS:AAIIQ) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Profitability

This table compares Woodward and Alabama Aircraft Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woodward	12.39%	17.68%	9.35%
Alabama Aircraft Industries	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Woodward and Alabama Aircraft Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woodward	0	3	9	1	2.85
Alabama Aircraft Industries	0	0	0	0	0.00

Woodward currently has a consensus target price of $323.89, suggesting a potential downside of 1.68%. Given Alabama Aircraft Industries’ higher probable upside, analysts clearly believe Alabama Aircraft Industries is more favorable than Woodward.

Risk & Volatility

Woodward has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Alabama Aircraft Industries has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Institutional and Insider Ownership

81.2% of Woodward shares are owned by institutional investors. 0.7% of Woodward shares are owned by insiders. Comparatively, 38.0% of Alabama Aircraft Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Woodward and Alabama Aircraft Industries”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	5.54	$442.11 million	$7.19	45.82
Alabama Aircraft Industries	N/A	N/A	N/A	N/A	N/A

Woodward has higher revenue and earnings than Alabama Aircraft Industries.

Summary

Woodward beats Alabama Aircraft Industries on 9 of the 11 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 Alabama Aircraft Industries

Alabama Aircraft Industries, Inc provides aircraft maintenance and modification services to the United States government, foreign governments, and military customers. Its services include maintenance and modification of military transport, tanker, and petrol aircraft airframes; and aircraft maintenance and modification services, such as complete airframe maintenance and repair, and custom air frame design and modification. The company’s services also comprise scheduled and unscheduled maintenance; interior refurbishment and reconfiguration; lavatory, galley, airstair, and auxiliary fuel tank installations; aging aircraft inspection; structural and accident damage repair; manufacturing and parts fabrication; composite repair; service bulletin and AD compliance; component repair and overhaul; EPA approved stripping and painting; CPCP; non-destructive testing; avionics upgrades and installation; and FAA repair station RJ1R454K. Its principal services performed under military contracts are programmed depot maintenance, aircraft modifications, aircraft stripping and painting, rewiring, parts fabrication, engineering support services, system integration of component upgrades, and modification of fixed wing aircrafts. In addition, the company offers airframe corrosion prevention and control, rewiring, and component overhauls, as well as structural, avionics, and other systems modification services. It provides its services directly as a prime contractor or indirectly as a sub- contractor. The company was formerly known as Pemco Aviation Group, Inc. and changed its name to Alabama Aircraft Industries Inc. in September 2007. Alabama Aircraft Industries, Inc was founded in 1983 and is based in Birmingham, Alabama. On Nov 3, 2011, the voluntary petition of Alabama Aircraft Industries, Inc., along with its affiliates, for reorganization under Ch 11 was converted to Ch 7. It had filed for Chapter 11 bankruptcy on Feb 15, 2011.