Astronics (NASDAQ:ATRO) vs. Teledyne Technologies (NYSE:TDY) Financial Analysis

Teledyne Technologies (NYSE:TDY) and Astronics (NASDAQ:ATRO) are both aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Volatility and Risk

Teledyne Technologies has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Astronics has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Teledyne Technologies	14.99%	10.24%	7.05%
Astronics	5.12%	49.34%	12.10%

Insider & Institutional Ownership

91.6% of Teledyne Technologies shares are owned by institutional investors. Comparatively, 56.7% of Astronics shares are owned by institutional investors. 1.4% of Teledyne Technologies shares are owned by insiders. Comparatively, 8.9% of Astronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teledyne Technologies	$6.12 billion	4.94	$894.80 million	$19.77	33.01
Astronics	$862.13 million	3.53	$29.36 million	$0.98	72.28

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Teledyne Technologies and Astronics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teledyne Technologies	0	3	4	1	2.75
Astronics	1	1	2	2	2.83

Teledyne Technologies presently has a consensus price target of $694.14, indicating a potential upside of 6.38%. Astronics has a consensus price target of $74.17, indicating a potential upside of 4.71%. Given Teledyne Technologies’ higher possible upside, equities research analysts clearly believe Teledyne Technologies is more favorable than Astronics.

Summary

Teledyne Technologies beats Astronics on 8 of the 15 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 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.