Moog (NYSE:MOG.B) & Leonardo DRS (NASDAQ:DRS) Head to Head Comparison

Leonardo DRS (NASDAQ:DRS) and Moog (NYSE:MOG.B) are both aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

18.8% of Leonardo DRS shares are held by institutional investors. Comparatively, 8.1% of Moog shares are held by institutional investors. 0.3% of Leonardo DRS shares are held by insiders. Comparatively, 2.4% of Moog shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Leonardo DRS pays out 35.0% of its earnings in the form of a dividend. Moog pays out 18.2% 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.

Volatility and Risk

Leonardo DRS has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Moog has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Leonardo DRS	7.62%	11.68%	7.29%
Moog	6.38%	15.47%	6.85%

Valuation and Earnings

This table compares Leonardo DRS and Moog”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Leonardo DRS	$3.65 billion	3.27	$278.00 million	$1.03	43.53
Moog	$3.86 billion	2.39	$235.03 million	$6.59	44.13

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

Analyst Ratings

This is a summary of current recommendations and price targets for Leonardo DRS and Moog, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Leonardo DRS	0	3	6	0	2.67
Moog	0	0	0	0	0.00

Leonardo DRS currently has a consensus target price of $51.00, indicating a potential upside of 13.74%. Given Leonardo DRS’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Leonardo DRS is more favorable than Moog.

Summary

Leonardo DRS beats Moog on 10 of the 16 factors compared between the two stocks.

About Leonardo DRS

Leonardo DRS, Inc., together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing. This segment also provides network computing, which are utilized across a range of mission applications including platform computing on ground and shipboard for advanced battle management, combat systems, radar, command and control, tactical networks, tactical computing, and communications. The IMS segment designs, develops, manufacture, and integrates power conversion, control, and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation, and logistics systems for the U.S. and allied defense customers. This segment also offers electrical propulsion systems, which includes power conversion, control, distribution, and propulsion systems, as well as power dense permanent magnet motors, energy storage systems and associated efficient, rugged, and compact power conversion, electrical actuation systems, as well as cooling technologies; and motor controllers, instrumentation and control equipment, electrical actuation systems, and thermal management systems. The company was incorporated in 1968 and is based in Arlington, Virginia. Leonardo DRS, Inc. operates as a subsidiary of Leonardo S.p.A.

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.