Analyzing Woodward (NASDAQ:WWD) and Spirit Aerosystems (NYSE:SPR)

Spirit Aerosystems (NYSE:SPR) and Woodward (NASDAQ:WWD) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Risk & Volatility

Spirit Aerosystems has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500. Comparatively, Woodward has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

93.6% of Spirit Aerosystems shares are held by institutional investors. Comparatively, 81.2% of Woodward shares are held by institutional investors. 0.9% of Spirit Aerosystems shares are held by insiders. Comparatively, 0.8% of Woodward shares are held 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.

Profitability

This table compares Spirit Aerosystems and Woodward’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spirit Aerosystems	-37.46%	N/A	-26.28%
Woodward	11.32%	16.57%	8.53%

Earnings & Valuation

This table compares Spirit Aerosystems and Woodward”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spirit Aerosystems	$6.32 billion	0.76	-$2.14 billion	($20.02)	-2.06
Woodward	$3.32 billion	4.43	$372.97 million	$6.32	38.81

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Spirit Aerosystems and Woodward, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spirit Aerosystems	0	2	0	1	2.67
Woodward	0	4	5	0	2.56

Spirit Aerosystems currently has a consensus target price of $38.6250, suggesting a potential downside of 6.14%. Woodward has a consensus target price of $249.6250, suggesting a potential upside of 1.76%. Given Woodward’s higher probable upside, analysts plainly believe Woodward is more favorable than Spirit Aerosystems.

Summary

Woodward beats Spirit Aerosystems on 9 of the 15 factors compared between the two stocks.

About Spirit Aerosystems

Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

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.