Head-To-Head Survey: Conrad Industries (OTCMKTS:CNRD) and Textron (NYSE:TXT)

Conrad Industries (OTCMKTS:CNRD) and Textron (NYSE:TXT) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Conrad Industries and Textron”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Conrad Industries	$303.41 million	0.37	$11.23 million	($0.34)	-66.32
Textron	$14.06 billion	1.01	$824.00 million	$4.42	17.96

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

Dividends

Conrad Industries pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Textron pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Conrad Industries pays out -117.6% of its earnings in the form of a dividend. Textron pays out 1.8% 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. Conrad Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Conrad Industries and Textron’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Conrad Industries	5.30%	20.25%	11.34%
Textron	5.80%	14.26%	6.12%

Insider & Institutional Ownership

0.6% of Conrad Industries shares are owned by institutional investors. Comparatively, 86.0% of Textron shares are owned by institutional investors. 31.5% of Conrad Industries shares are owned by insiders. Comparatively, 1.7% of Textron shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Conrad Industries and Textron, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Conrad Industries	0	0	0	0	0.00
Textron	0	6	6	0	2.50

Textron has a consensus target price of $92.6667, suggesting a potential upside of 16.74%. Given Textron’s stronger consensus rating and higher probable upside, analysts plainly believe Textron is more favorable than Conrad Industries.

Risk and Volatility

Conrad Industries has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Textron has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Summary

Textron beats Conrad Industries on 11 of the 16 factors compared between the two stocks.

About Conrad Industries

Conrad Industries, Inc. engages in the construction, conversion, and repair of various steel and aluminum marine vessels in the United States. The company builds harbor tugs; specialty barges, such as crane, deck, ABS class, dry bulk cargo, aggregate, and well stim barges; inland tank, LPG inland tank, LPG pressure, LPG tank, and DS tank barges; and offshore support vessels, including liftboats, crew boats, offshore supply vessels, and offshore tugs, as well as other support equipment, such as deck and crane barges. It also builds inland pushboats comprising inland towboats, inland river push boats, and towboats; and ferries, which consist of passenger, and passenger and vehicle ferries. In addition, the company offers repairs and conversions, including electrical, mechanical, propulsion, and hull repairs to large-scale conversions of ships and barges; and engages in the fabrication of modular components for offshore floating production, storage, and offloading vessels, as well as drilling rigs. The company was founded in 1948 and is headquartered in Morgan City, Louisiana.

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.