Precision Castparts (NYSE: PCP) and DigitalGlobe (NYSE:DGI) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Insider & Institutional Ownership
87.9% of DigitalGlobe shares are owned by institutional investors. 2.3% of DigitalGlobe shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Precision Castparts and DigitalGlobe’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DigitalGlobe||$725.40 million||0.00||$26.50 million||$0.02||N/A|
DigitalGlobe has higher revenue and earnings than Precision Castparts. DigitalGlobe is trading at a lower price-to-earnings ratio than Precision Castparts, indicating that it is currently the more affordable of the two stocks.
This table compares Precision Castparts and DigitalGlobe’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Precision Castparts pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. DigitalGlobe does not pay a dividend. Precision Castparts pays out 1.3% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Precision Castparts and DigitalGlobe, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DigitalGlobe has a consensus price target of $35.83, suggesting a potential upside of Infinity. Given DigitalGlobe’s higher probable upside, analysts plainly believe DigitalGlobe is more favorable than Precision Castparts.
DigitalGlobe beats Precision Castparts on 7 of the 12 factors compared between the two stocks.
About Precision Castparts
Precision Castparts Corp. is a manufacturer of metal components and products. The Company has three business segments: Investment Cast Products, Forged Products and Airframe Products. The Company’s Investment Cast Products segment manufactures investment castings and provides related investment casting materials and alloys, for aircraft engines, industrial gas turbine (IGT) engines, airframes, armaments, medical prostheses, unmanned aerial vehicles and other industrial applications. The Company’s Forged Products segment manufactures forged components from titanium and nickel-based alloys, and nickel, titanium and cobalt-based alloys for aerospace and non-aerospace markets, which include products for oil and gas, chemical processing and pollution control applications. The Company’s Airframe Products segment manufactures fasteners, fastener systems, fluid fittings, aerostructures and precision components, primarily for aerospace applications.
DigitalGlobe, Inc. is a provider of Earth imagery, data and analysis. The Company’s imagery solutions and other services support a range of uses, including mission-planning, mapping and analysis, environmental monitoring, oil and gas exploration and infrastructure management. The Company’s imagery solutions and other services are sourced from its own satellite constellation and third-party providers. The Company sells its products and services through a combination of direct and indirect channels, consisting of a global network of resellers, strategic partners and direct enterprise sales to its United States Government and Diversified Commercial customer groups. The Company offers products consisting of imagery from its constellation of satellites, and provides geospatial products and services. The Company processes its imagery to varying levels according to its customers’ specifications and delivers its products using the distribution method.
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