Contrasting Astronics (OTCMKTS:ATROB) and BWX Technologies (NYSE:BWXT)

BWX Technologies (NYSE:BWXT) and Astronics (OTCMKTS:ATROB) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

94.4% of BWX Technologies shares are owned by institutional investors. 0.5% of BWX Technologies shares are owned by company insiders. Comparatively, 16.0% of Astronics shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for BWX Technologies and Astronics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BWX Technologies	0	4	7	3	2.93
Astronics	0	0	0	0	0.00

BWX Technologies currently has a consensus target price of $196.23, indicating a potential upside of 16.79%. Given BWX Technologies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe BWX Technologies is more favorable than Astronics.

Volatility & Risk

BWX Technologies has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Astronics has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.

Profitability

This table compares BWX Technologies and Astronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BWX Technologies	10.04%	30.70%	10.55%
Astronics	-0.37%	29.65%	10.15%

Valuation & Earnings

This table compares BWX Technologies and Astronics”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BWX Technologies	$2.70 billion	5.68	$281.94 million	$3.33	50.46
Astronics	$795.43 million	2.45	-$16.22 million	($0.09)	-608.00

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

Summary

BWX Technologies beats Astronics on 13 of the 15 factors compared between the two stocks.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.