Critical Review: QinetiQ Group (OTCMKTS:QNTQY) versus SIFCO Industries (NYSE:SIF)

QinetiQ Group (OTCMKTS:QNTQY) and SIFCO Industries (NYSE:SIF) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Profitability

This table compares QinetiQ Group and SIFCO Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QinetiQ Group	N/A	N/A	N/A
SIFCO Industries	-10.98%	-24.45%	-8.57%

Institutional and Insider Ownership

24.2% of SIFCO Industries shares are owned by institutional investors. 28.1% of SIFCO Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for QinetiQ Group and SIFCO Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QinetiQ Group	0	0	0	0	N/A
SIFCO Industries	0	0	0	0	N/A

Valuation and Earnings

This table compares QinetiQ Group and SIFCO Industries’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QinetiQ Group	N/A	N/A	N/A	($0.26)	-69.52
SIFCO Industries	$87.02 million	0.22	-$8.69 million	($1.61)	-1.89

QinetiQ Group has higher earnings, but lower revenue than SIFCO Industries. QinetiQ Group is trading at a lower price-to-earnings ratio than SIFCO Industries, indicating that it is currently the more affordable of the two stocks.

About QinetiQ Group

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and infrastructure markets in the United Kingdom, the United States, Australia, Europe, and internationally. The company operates through EMEA Services and Global Products segments. It offers advanced materials and manufacturing products; artificial intelligence, analytics, and advanced computing technologies; cyber and electromagnetic technologies; human protection and performance systems; novel systems, and weapons and effects; platform and system design and assessment products; power sources, and energy storage and distribution products; robotics and autonomy services; secure communications and navigation systems; and sensing, processing, and data fusion systems. The company also provides testing and evaluation, training and simulation, and cyber and digital resilience services, as well as unmanned air, land, and surface targets. It serves defense, aviation and aerospace, energy and utility, financial services, government, law enforcement, marine, space, and telecommunications sectors. The company was founded in 2001 and is based in Farnborough, the United Kingdom.

About SIFCO Industries

SIFCO Industries, Inc., together with its subsidiaries, produces and sells forgings and machined components primarily for the aerospace and energy markets in North America and Europe. The company's processes and services include forging, heat-treating, chemical processing, and machining. It also offers original equipment manufacturer and aftermarket components for aircraft and industrial gas turbine engines; steam turbine blades; structural airframe components; aircraft landing gear components; aircraft wheels and brakes; rotating components for helicopters; and commercial/industrial products. In addition, the company provides heat-treatment, surface-treatment, non-destructive testing, and select machining and sub-assembly of forged components. SIFCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.