Financial Contrast: Teledyne Technologies (NYSE:TDY) & CAE (NYSE:CAE)

CAE (NYSE:CAE) and Teledyne Technologies (NYSE:TDY) are both aerospace companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Risk and Volatility

CAE has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CAE	7.70%	7.75%	3.57%
Teledyne Technologies	14.63%	10.08%	6.85%

Analyst Ratings

This is a summary of recent ratings and recommmendations for CAE and Teledyne Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CAE	1	3	6	2	2.75
Teledyne Technologies	0	3	6	0	2.67

CAE currently has a consensus price target of $33.33, suggesting a potential upside of 26.63%. Teledyne Technologies has a consensus price target of $666.25, suggesting a potential upside of 3.23%. Given CAE’s stronger consensus rating and higher probable upside, analysts clearly believe CAE is more favorable than Teledyne Technologies.

Valuation and Earnings

This table compares CAE and Teledyne Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CAE	$3.28 billion	2.58	$291.29 million	$0.83	31.71
Teledyne Technologies	$6.12 billion	4.89	$894.80 million	$18.91	34.13

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

Insider and Institutional Ownership

67.4% of CAE shares are held by institutional investors. Comparatively, 91.6% of Teledyne Technologies shares are held by institutional investors. 18.3% of CAE shares are held by company insiders. Comparatively, 1.4% of Teledyne Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Teledyne Technologies beats CAE on 9 of the 14 factors compared between the two stocks.

About CAE

CAE Inc., together with its subsidiaries, provides simulation training and critical operations support solutions in Canada, the United States, the United Kingdom, Europe, Asia, the Oceania, Africa, and Rest of the Americas. It operates through two segments, Civil Aviation; and Defense and Security. The Civil Aviation segment offers training solutions for flight, cabin, maintenance, and ground personnel in commercial, business, and helicopter aviation; a range of flight simulation training devices; and ab initio pilot training and crew sourcing services, as well as aircraft flight operations solutions. The Defense and Security segment operates as a training and simulation provider that delivers platform-independent solutions to enable and enhance force readiness and security for defense forces, original equipment manufacturers (OEMs), government agencies, and public safety organizations. The company was formerly known as CAE Industries Ltd. and changed its name to CAE Inc. in 1993. CAE Inc. was incorporated in 1947 and is headquartered in Saint-Laurent, Canada.

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.