Teledyne Technologies (NYSE:TDY) vs. Ducommun (NYSE:DCO) Financial Analysis

Teledyne Technologies (NYSE:TDY) and Ducommun (NYSE:DCO) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teledyne Technologies	13.62%	9.95%	6.73%
Ducommun	5.03%	7.61%	4.62%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Teledyne Technologies and Ducommun, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	2	6	0	2.75
Ducommun	0	1	6	0	2.86

Teledyne Technologies presently has a consensus price target of $606.29, suggesting a potential upside of 15.35%. Ducommun has a consensus price target of $97.50, suggesting a potential upside of 4.15%. Given Teledyne Technologies’ higher possible upside, equities research analysts plainly believe Teledyne Technologies is more favorable than Ducommun.

Risk and Volatility

Teledyne Technologies has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Ducommun has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Institutional & Insider Ownership

91.6% of Teledyne Technologies shares are held by institutional investors. Comparatively, 92.2% of Ducommun shares are held by institutional investors. 1.5% of Teledyne Technologies shares are held by company insiders. Comparatively, 8.9% of Ducommun shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Teledyne Technologies and Ducommun”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$5.67 billion	4.35	$819.20 million	$17.27	30.43
Ducommun	$786.55 million	1.78	$31.50 million	$2.63	35.59

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

Summary

Teledyne Technologies beats Ducommun on 8 of the 13 factors compared between the two stocks.

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.

About Ducommun

Ducommun Incorporated provides engineering and manufacturing services for products and applications used primarily in the aerospace and defense, industrial, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment provides cable assemblies and interconnect systems; printed circuit board assemblies; electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, printed circuit board assemblies, cable assemblies, wire harnesses, interconnect systems, lightning diversion strips, surge suppressors, conformal shields, and other assemblies. The segment also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; aerodynamic systems; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, engine components, ammunition handling systems, and magnetic seals. It serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. The company was founded in 1849 and is headquartered in Santa Ana, California.