Head-To-Head Comparison: Moog (NYSE:MOG.B) and Textron (NYSE:TXT)

Textron (NYSE:TXT) and Moog (NYSE:MOG.B) are both large-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.

Profitability

This table compares Textron and Moog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Textron	6.12%	14.30%	6.26%
Moog	8.73%	17.67%	7.94%

Volatility and Risk

Textron has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Moog has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Textron and Moog, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Textron	0	7	2	1	2.40
Moog	0	1	0	0	2.00

Textron presently has a consensus price target of $102.44, indicating a potential upside of 32.41%. Given Textron’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Textron is more favorable than Moog.

Earnings and Valuation

This table compares Textron and Moog”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Textron	$14.80 billion	0.90	$921.00 million	$5.30	14.60
Moog	$3.86 billion	3.26	$235.03 million	$11.76	33.74

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

Institutional and Insider Ownership

86.0% of Textron shares are owned by institutional investors. Comparatively, 8.1% of Moog shares are owned by institutional investors. 1.9% of Textron shares are owned by insiders. Comparatively, 2.4% of Moog shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

Textron pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Textron pays out 1.5% of its earnings in the form of a dividend. Moog pays out 10.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Textron beats Moog on 9 of the 17 factors compared between the two stocks.

About Textron

Textron Inc. operates in the aircraft, defense, industrial, and finance businesses worldwide. It operates through six segments: Textron Aviation, Bell, Textron Systems, Industrial, Textron eAviation, and Finance. The Textron Aviation segment manufactures, sells, and services business jets, turboprop and piston engine aircraft, and military trainer and defense aircraft; and offers maintenance, inspection, and repair services, as well as sells commercial parts. The Bell segment supplies military and commercial helicopters, tiltrotor aircrafts, and related spare parts and services. The Textron Systems segment offers unmanned aircraft systems, electronic systems and solutions, advanced marine crafts, piston aircraft engines, live military air-to-air and air-to-ship training, weapons and related components, and armored and specialty vehicles. The Industrial segment offers blow-molded solutions, including conventional plastic fuel tanks and pressurized fuel tanks for hybrid vehicle applications, clear-vision systems, plastic tanks for catalytic reduction systems, and battery housing systems for use in electric vehicles primarily to automobile original equipment manufacturers (OEMs); and golf cars, off-road utility vehicles, powersports products, light transportation vehicles, aviation ground support equipment, professional turf-maintenance equipment, and turf-care vehicles to golf courses and resorts, government agencies and municipalities, consumers, outdoor enthusiasts, and commercial and industrial users. The Textron eAviation segment manufactures and sells light aircraft and gliders with electric and combustion engines; and provides other research and development initiatives related to sustainable aviation solutions. The Finance segment offers financing services to purchase new and pre-owned aviation aircraft and Bell helicopters. Textron Inc. was founded in 1923 and is headquartered in Providence, Rhode Island.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance, and other defense applications; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers steering tactical and strategic missiles; and designs, builds, and integrates weapon stores management systems for light attack aerial reconnaissance, ground, and sea platforms. The company's Industrial Systems segment provides systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; and supplies solutions for power generation applications, electromechanical motion simulation bases, medical training simulators, and custom test systems and controls. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; and components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition. The company was founded in 1951 and is headquartered in East Aurora, New York.