Critical Survey: Curtiss-Wright (NYSE:CW) versus Teledyne Technologies (NYSE:TDY)

Teledyne Technologies (NYSE:TDY) and Curtiss-Wright (NYSE:CW) are both large-cap aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Risk and Volatility

Teledyne Technologies has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Curtiss-Wright has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500.

Institutional and Insider Ownership

91.6% of Teledyne Technologies shares are owned by institutional investors. Comparatively, 82.7% of Curtiss-Wright shares are owned by institutional investors. 1.5% of Teledyne Technologies shares are owned by company insiders. Comparatively, 0.6% of Curtiss-Wright shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Teledyne Technologies and Curtiss-Wright’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%
Curtiss-Wright	13.78%	18.82%	9.53%

Earnings and Valuation

This table compares Teledyne Technologies and Curtiss-Wright”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$5.67 billion	4.82	$819.20 million	$17.27	33.69
Curtiss-Wright	$3.12 billion	7.84	$404.98 million	$12.27	54.11

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Teledyne Technologies and Curtiss-Wright, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	3	6	0	2.67
Curtiss-Wright	0	3	4	0	2.57

Teledyne Technologies presently has a consensus price target of $605.38, indicating a potential upside of 4.04%. Curtiss-Wright has a consensus price target of $605.50, indicating a potential downside of 8.80%. Given Teledyne Technologies’ stronger consensus rating and higher possible upside, research analysts plainly believe Teledyne Technologies is more favorable than Curtiss-Wright.

Summary

Teledyne Technologies beats Curtiss-Wright on 9 of the 14 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 Curtiss-Wright

Curtiss-Wright Corporation, together with its subsidiaries, provides engineered products, solutions, and services mainly to aerospace and defense, commercial power, process, and industrial markets worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. The Aerospace & Industrial segment offers industrial and specialty vehicle products, such as power management electronics, traction inverters, transmission shifters, and control systems; sensors, controls, and electro-mechanical actuation components used on commercial and military aircraft; and surface technology services including shot peening, laser peening, and engineered coatings. The Defense Electronics segment provides commercial off-the-shelf embedded computing board-level modules and processing equipment, data acquisition and flight test instrumentation equipment, integrated subsystems, instrumentation and control systems, tactical communications solutions; and electronic stabilization products, and weapons handling systems; avionics and electronics; flight test equipment; and aircraft data management solutions. The Naval & Power segment offers main coolant pumps, power-dense compact motors, generators, steam turbines, valves, and secondary propulsion systems; energy absorbers, retractable hook cable systems, net-stanchion systems and mobile systems to support fixed land-based arresting systems; hardware, valves, fastening systems, specialized containment doors, airlock hatches, and spent fuel management products; reactor coolant pumps and control rod drive mechanisms for commercial nuclear power plants, as well as various nuclear reactor technologies. This segment furnishes severe-service valve technologies and services, heat exchanger repair, and piping test and isolation products, and offers ship repair and maintenance for the U.S. navy. Curtiss-Wright Corporation was incorporated in 1929 and is headquartered in Davidson, North Carolina.