Comparing Curtiss-Wright (NYSE:CW) and Triumph Group (NYSE:TGI)

Curtiss-Wright (NYSE:CW) and Triumph Group (NYSE:TGI) are both aerospace companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Curtiss-Wright and Triumph Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curtiss-Wright	0	2	5	0	2.71
Triumph Group	1	7	0	0	1.88

Curtiss-Wright currently has a consensus price target of $468.1429, suggesting a potential downside of 2.32%. Triumph Group has a consensus price target of $22.6667, suggesting a potential downside of 12.84%. Given Curtiss-Wright’s stronger consensus rating and higher probable upside, equities analysts plainly believe Curtiss-Wright is more favorable than Triumph Group.

Institutional and Insider Ownership

82.7% of Curtiss-Wright shares are held by institutional investors. Comparatively, 94.5% of Triumph Group shares are held by institutional investors. 0.6% of Curtiss-Wright shares are held by insiders. Comparatively, 2.3% of Triumph Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Curtiss-Wright pays an annual dividend of $0.96 per share and has a dividend yield of 0.2%. Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. Curtiss-Wright pays out 8.1% of its earnings in the form of a dividend. Triumph Group pays out 30.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Curtiss-Wright has raised its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Curtiss-Wright and Triumph Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curtiss-Wright	$3.12 billion	5.79	$404.98 million	$11.85	40.44
Triumph Group	$1.26 billion	1.60	$40.87 million	$0.52	50.01

Curtiss-Wright has higher revenue and earnings than Triumph Group. Curtiss-Wright is trading at a lower price-to-earnings ratio than Triumph Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Curtiss-Wright and Triumph Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curtiss-Wright	13.66%	18.34%	9.35%
Triumph Group	3.24%	-74.53%	4.53%

Volatility and Risk

Curtiss-Wright has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Triumph Group has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Summary

Curtiss-Wright beats Triumph Group on 12 of the 17 factors compared between the two stocks.

About Curtiss-Wright

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.

About Triumph Group

Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls, and distributes aircraft, aircraft components, accessories, subassemblies, and systems worldwide. It operates in two segments, Triumph Systems & Support, and Triumph Interiors. The company offers aircraft and engine-mounted accessory drives, thermal control systems and components, cargo hooks, high lift actuations, cockpit control levers, hydraulic systems and components, control system valve bodies, landing gear actuation systems, electronic engine controls, landing gear components and assemblies, cyber protected process controllers, main engine gearbox assemblies, geared transmissions and drive train components, main fuel pumps, fuel-metering units, primary and secondary flight control systems, and vibration absorbers. It also provides thermo-acoustic insulation systems, environmental control system ducting, and other aircraft interior components. The company serves original equipment manufacturers of commercial, regional, and military aircraft. Triumph Group, Inc. was incorporated in 1993 and is headquartered in Radnor, Pennsylvania.