Elbit Systems (NASDAQ: ESLT) and Teledyne Technologies (NYSE:TDY) are both mid-cap aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
Elbit Systems has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
11.8% of Elbit Systems shares are held by institutional investors. Comparatively, 85.0% of Teledyne Technologies shares are held by institutional investors. 0.8% of Elbit Systems shares are held by insiders. Comparatively, 3.7% of Teledyne Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Elbit Systems pays an annual dividend of $1.76 per share and has a dividend yield of 1.4%. Teledyne Technologies does not pay a dividend. Elbit Systems pays out 31.5% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Elbit Systems and Teledyne Technologies’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Elbit Systems||$3.38 billion||1.61||$236.90 million||$5.59||22.82|
|Teledyne Technologies||$2.60 billion||2.52||$227.20 million||$6.24||29.47|
Elbit Systems has higher revenue and earnings than Teledyne Technologies. Elbit Systems is trading at a lower price-to-earnings ratio than Teledyne Technologies, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Elbit Systems and Teledyne Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Elbit Systems presently has a consensus target price of $110.00, indicating a potential downside of 13.75%. Teledyne Technologies has a consensus target price of $187.50, indicating a potential upside of 1.96%. Given Teledyne Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Teledyne Technologies is more favorable than Elbit Systems.
This table compares Elbit Systems and Teledyne Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Teledyne Technologies beats Elbit Systems on 12 of the 16 factors compared between the two stocks.
About Elbit Systems
Elbit Systems Ltd. is an international technology company engaged in a range of programs across the world. The Company develops and supplies a portfolio of airborne, land and naval systems and products for defense, homeland security and commercial aviation applications. Its systems and products are installed on new platforms, and it also performs platform modernization programs. In addition, it provides a range of support services. The Company’s activities include military aircraft and helicopter systems; helmet mounted systems; commercial aviation systems and aerostructures; unmanned aircraft and unmanned surface vessels; land vehicle systems; command, control, communications, computer and intelligence (C4I) systems; intelligence and cyber systems; electro-optic and countermeasures systems; electronic warfare and signal intelligence systems, and various commercial activities. It operates primarily in the defense and homeland security arenas.
About Teledyne Technologies
Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets. The Company’s segments include Instrumentation, Digital Imaging, Aerospace and Defense Electronics, and Engineered Systems. Instrumentation segment provides monitoring and control instruments for marine, environmental, industrial and other applications, as well as electronic test and measurement equipment. Digital Imaging segment includes sensors, cameras and systems, within the visible, infrared, ultraviolet and X-ray spectra. Aerospace and Defense Electronics segment provides electronic components and subsystems and communications products, including defense electronics. Engineered Systems segment provides systems engineering and integration and technology development, as well as manufacturing solutions.
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