Critical Analysis: RMG Acquisition Corp. III (NASDAQ:RMGC) and Woodward (NASDAQ:WWD)

Woodward (NASDAQ:WWDGet Free Report) and RMG Acquisition Corp. III (NASDAQ:RMGCGet Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Volatility & Risk

Woodward has a beta of 1.45, indicating that its share price is 45% more volatile than the S&P 500. Comparatively, RMG Acquisition Corp. III has a beta of 0.05, indicating that its share price is 95% less volatile than the S&P 500.

Profitability

This table compares Woodward and RMG Acquisition Corp. III’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woodward 7.34% 11.46% 5.79%
RMG Acquisition Corp. III N/A -35.87% -1.05%

Insider and Institutional Ownership

79.6% of Woodward shares are held by institutional investors. Comparatively, 5.4% of RMG Acquisition Corp. III shares are held by institutional investors. 1.2% of Woodward shares are held by insiders. Comparatively, 92.9% of RMG Acquisition Corp. III shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Woodward and RMG Acquisition Corp. III’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Woodward $2.78 billion 2.82 $171.70 million $3.32 39.11
RMG Acquisition Corp. III N/A N/A $15.88 million N/A N/A

Woodward has higher revenue and earnings than RMG Acquisition Corp. III.

Analyst Ratings

This is a summary of recent ratings and target prices for Woodward and RMG Acquisition Corp. III, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodward 1 6 2 0 2.11
RMG Acquisition Corp. III 0 0 0 0 N/A

Woodward presently has a consensus price target of $117.78, indicating a potential downside of 9.30%. Given Woodward’s higher possible upside, research analysts clearly believe Woodward is more favorable than RMG Acquisition Corp. III.

Summary

Woodward beats RMG Acquisition Corp. III on 9 of the 10 factors compared between the two stocks.

About Woodward

(Get Free Report)

Woodward, Inc. designs, manufactures, and services control solutions for the aerospace and industrial markets worldwide. The company operates through 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 various contractors, as well as through aftermarket sales of components, such as provisioning spares or replacements, and spare parts. 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 RMG Acquisition Corp. III

(Get Free Report)

RMG Acquisition Corp. III does not have significant operations. It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. RMG Acquisition Corp. III was incorporated in 2020 and is based in Miami Beach, Florida. RMG Acquisition Corp. III operates as a subsidiary of RMG Sponsor III, LLC.

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