Financial Analysis: Woodward (NASDAQ:WWD) and Teledyne Technologies (NYSE:TDY)

Woodward (NASDAQ:WWD) and Teledyne Technologies (NYSE:TDY) are both large-cap aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Woodward and Teledyne Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woodward	0	4	5	0	2.56
Teledyne Technologies	0	1	6	0	2.86

Woodward currently has a consensus price target of $249.6250, indicating a potential upside of 0.47%. Teledyne Technologies has a consensus price target of $576.5714, indicating a potential upside of 5.53%. Given Teledyne Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Teledyne Technologies is more favorable than Woodward.

Volatility & Risk

Woodward has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.

Insider & Institutional Ownership

81.2% of Woodward shares are held by institutional investors. Comparatively, 91.6% of Teledyne Technologies shares are held by institutional investors. 0.8% of Woodward shares are held by company insiders. Comparatively, 1.5% of Teledyne Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Woodward and Teledyne Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woodward	11.32%	16.57%	8.53%
Teledyne Technologies	14.54%	9.96%	6.67%

Earnings and Valuation

This table compares Woodward and Teledyne Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woodward	$3.32 billion	4.48	$372.97 million	$6.32	39.31
Teledyne Technologies	$5.67 billion	4.52	$819.20 million	$18.16	30.09

Teledyne Technologies has higher revenue and earnings than Woodward. Teledyne Technologies is trading at a lower price-to-earnings ratio than Woodward, indicating that it is currently the more affordable of the two stocks.

Summary

Teledyne Technologies beats Woodward on 10 of the 14 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 Teledyne Technologies

Teledyne Technologies Incorporated, together with its subsidiaries, provides enabling technologies for industrial growth markets in the United States and internationally. Its Digital Imaging segment provides visible spectrum sensors and digital cameras; and infrared, ultraviolet, visible, and X-ray spectra; as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers cooled and uncooled infrared or thermal products, including sensors, camera cores, and camera systems; high-resolution, low-dose X-ray sensors, high-power microwave, and high-energy X-ray subsystems; and instruments for the measurement of physical properties and maritime products; as well as develops and manufactures multi-spectrum electro-optic/infrared imaging systems and associated products, such as lasers, optics, and radars, CBRNE (Chemical, Biological, Radiological, Nuclear and Explosive detectors), and unmanned air and ground systems. The company's Instrumentation segment offers monitoring, control, and electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, data acquisition and communications components and equipment, harsh environment interconnects, general aviation batteries, and other components; and onboard avionics systems and ground-based applications, aircraft data and connectivity solutions, hardware systems, and software applications. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications. The company was founded in 1960 and is headquartered in Thousand Oaks, California.