Reviewing KLX (KLXI) & Boeing (BA)

KLX (NASDAQ: KLXI) and Boeing (NYSE:BA) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Profitability

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This table compares KLX and Boeing’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KLX 3.07% 6.03% 3.61%
Boeing 8.78% -11,050.62% 8.10%

Dividends

Boeing pays an annual dividend of $6.84 per share and has a dividend yield of 2.1%. KLX does not pay a dividend. Boeing pays out 50.8% of its earnings in the form of a dividend. KLX has raised its dividend for 6 consecutive years.

Risk & Volatility

KLX has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Boeing has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500.

Institutional & Insider Ownership

98.4% of KLX shares are owned by institutional investors. Comparatively, 70.8% of Boeing shares are owned by institutional investors. 1.8% of KLX shares are owned by company insiders. Comparatively, 0.3% of Boeing shares are owned by company 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.

Valuation and Earnings

This table compares KLX and Boeing’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KLX $1.74 billion 2.01 $53.40 million $1.04 66.32
Boeing $93.39 billion 2.02 $8.20 billion $13.47 23.83

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

Analyst Ratings

This is a breakdown of recent recommendations for KLX and Boeing, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KLX 0 2 3 0 2.60
Boeing 0 9 16 0 2.64

KLX currently has a consensus target price of $65.00, indicating a potential downside of 5.76%. Boeing has a consensus target price of $360.95, indicating a potential upside of 12.45%. Given Boeing’s stronger consensus rating and higher probable upside, analysts clearly believe Boeing is more favorable than KLX.

Summary

Boeing beats KLX on 11 of the 17 factors compared between the two stocks.

KLX Company Profile

KLX Inc., together with its subsidiaries, provides aerospace fasteners, consumables, and logistics services worldwide. It operates in two segments, Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The ASG segment distributes bolts, clips, hinges, rings, screws, carbon-faced seals, gaskets, O-rings, and others; chemicals, sealants and adhesives, lubricants, paints, cleaners, and degreasers; Honeywell proprietary parts; and bearings, tooling, electrical components, and clamps. This segment also provides inventory management services and technical support services, as well as operates an e-commerce site that provides customized solutions for customers. It serves commercial airlines; business jet and defense original equipment manufacturers and their subcontractors; airlines; maintenance, repair, and overhaul operators; fixed base operators; and military depots. The ESG segment offers fishing (retrieval) services and equipment; wireline services, including composite frac plug pump downs, pipe recovery and perforation, and evaluation and logging services; pressure control services and rental equipment to assist its clients at the wellsite; and onshore completion services, such as placement and removal of flow control nipples and valves, completion packers, bridge plugs, and composite flow through frac plugs, as well as downhole services tools. This segment also provides down-hole completion and production services; and mobile, customizable workforce accommodations and offices, and associated rental equipment to its customers at their remote field locations. In addition, it offers machine shop services, which consist of CNC lathes, milling machines, spindle lathes, and other machining equipment to rework and rectify damaged equipment, as well as to design/build specialized fit-for-purpose tools. It primarily serves regional or independent oil companies. KLX Inc. is headquartered in Wellington, Florida.

Boeing Company Profile

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company operates in four segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital. The Commercial Airplanes segment provides commercial jet aircraft for passenger and cargo requirements, and fleet support services, principally to the commercial airline industry. The Defense, Space & Security segment engages in the research, development, production, and modification of manned and unmanned military aircraft and weapons systems; strategic defense and intelligence systems, which include strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance, cyber and information solutions, and intelligence systems; and satellite systems, such as government and commercial satellites, and space exploration. The Global Services segment offers aviation services support, aircraft modifications, spare parts, training, maintenance documents, data analytics and information-based services, and technical advice to commercial and government customers. This segment also provides supply chain management and engineering support services; maintenance, modification, and upgrades for aircraft; and training systems and government services, that include pilot and maintenance training. The Boeing Capital segment offers financing services and manages financing exposure for a portfolio of equipment under operating and finance leases, notes and other receivables, assets held for sale or re-lease, and investments. The company was founded in 1916 and is headquartered in Chicago, Illinois.

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