Comparing Moog (NYSE:MOG.B) and AeroVironment (NASDAQ:AVAV)

Moog (NYSE:MOG.B) and AeroVironment (NASDAQ:AVAV) are both large-cap aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

8.1% of Moog shares are owned by institutional investors. Comparatively, 86.4% of AeroVironment shares are owned by institutional investors. 2.4% of Moog shares are owned by insiders. Comparatively, 0.8% of AeroVironment 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.

Risk and Volatility

Moog has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, AeroVironment has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Moog and AeroVironment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Moog	0	0	0	0	0.00
AeroVironment	1	2	18	2	2.91

AeroVironment has a consensus price target of $367.00, indicating a potential upside of 45.49%. Given AeroVironment’s stronger consensus rating and higher possible upside, analysts plainly believe AeroVironment is more favorable than Moog.

Earnings & Valuation

This table compares Moog and AeroVironment”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Moog	$3.86 billion	2.77	$235.03 million	$6.59	51.21
AeroVironment	$1.37 billion	9.19	$43.62 million	($1.25)	-201.80

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

Profitability

This table compares Moog and AeroVironment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Moog	6.38%	15.47%	6.85%
AeroVironment	-5.08%	3.42%	2.70%

Summary

Moog beats AeroVironment on 8 of the 15 factors compared between the two stocks.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.

About AeroVironment

AeroVironment, Inc. designs, develops, produces, delivers, and supports a portfolio of robotic systems and related services for government agencies and businesses in the United States and internationally. It operates through Small Unmanned Aircraft Systems (SUAS), Tactical Missile System (TMS), Medium Unmanned Aircraft Systems (MUAS), and High Altitude Pseudo-Satellite Systems (HAPS) segments. The company supplies UAS, TMS, unmanned ground vehicle, and related services primarily to organizations within the U.S. Department of Defense, other federal agencies, and to international allied governments. It also designs, engineers, tools, and manufactures unmanned aerial and aircraft systems, including airborne platforms, payloads and payload integration, ground control systems, and ground support equipment and other items and services related to unmanned aircraft systems. In addition, the company offers small UAS products, including training, spare parts, product repair, product replacement, and the customer contracted operation. Further, it develops high-altitude pseudo-satellite UAS systems. AeroVironment, Inc. was incorporated in 1971 and is headquartered in Arlington, Virginia.