Head-To-Head Review: Transdigm Group (NYSE:TDG) vs. Astrotech (NASDAQ:ASTC)

Astrotech (NASDAQ:ASTC) and Transdigm Group (NYSE:TDG) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Volatility & Risk

Astrotech has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500. Comparatively, Transdigm Group has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.

Profitability

This table compares Astrotech and Transdigm Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Astrotech	-1,069.89%	-59.71%	-51.64%
Transdigm Group	21.69%	-31.91%	9.53%

Earnings & Valuation

This table compares Astrotech and Transdigm Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Astrotech	$1.05 million	5.53	-$13.85 million	($8.45)	-0.39
Transdigm Group	$8.83 billion	8.88	$2.07 billion	$32.08	43.39

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

Institutional and Insider Ownership

24.4% of Astrotech shares are held by institutional investors. Comparatively, 95.8% of Transdigm Group shares are held by institutional investors. 16.8% of Astrotech shares are held by company insiders. Comparatively, 4.1% of Transdigm Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Astrotech and Transdigm Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Astrotech	1	0	0	0	1.00
Transdigm Group	0	4	13	1	2.83

Transdigm Group has a consensus price target of $1,596.60, suggesting a potential upside of 14.70%. Given Transdigm Group’s stronger consensus rating and higher possible upside, analysts clearly believe Transdigm Group is more favorable than Astrotech.

Summary

Transdigm Group beats Astrotech on 14 of the 15 factors compared between the two stocks.

About Astrotech

Astrotech Corporation operates as a mass spectrometry company worldwide. It owns and licenses the intellectual property related to the Astrotech Mass Spectrometer Technology, a platform mass spectrometry technology. The company also develops TRACER 1000, a mass spectrometer-based explosive trace detector to replace the explosives trace detectors used at airports, cargo and other secured facilities, and borders. In addition, it develops AgLAB-1000, a mass spectrometer for use in the hemp and cannabis market. Further, the company develops BreathTest-1000, a breath analysis tool to screen for volatile organic compound metabolites found in a person's breath. The company was formerly known as SPACEHAB, Inc. and changed its name to Astrotech Corporation in 2009. The company was incorporated in 1984 and is based in Austin, Texas.

About Transdigm Group

TransDigm Group Incorporated designs, produces, and supplies aircraft components in the United States and internationally. The Power & Control segment offers mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, sensor products, switches and relay panels, hoists, winches and lifting devices, and cargo loading and handling systems. This segment serves engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Airframe segment provides engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, cockpit displays, engineered audio, radio and antenna systems, lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation products, lighting and control technology, and parachutes. This segment serves airframe manufacturers, cabin system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies, and repair depots. The Non-aviation segment offers seat belts and safety restraints for ground transportation applications; electro-mechanical actuators for space applications; hydraulic/electromechanical actuators and fuel valves for land-based gas turbines; refueling systems for heavy equipment used in mining, construction, and other industries; and turbine controls for the energy and oil and gas markets. This segment serves off-road vehicle and subsystem suppliers, child restraint system suppliers, and satellite and space system suppliers; and manufacturers of heavy equipment. TransDigm Group Incorporated was founded in 1993 and is based in Cleveland, Ohio.