Rockwell Collins (COL) & Spirit AeroSystems (SPR) Head to Head Analysis

Rockwell Collins (NYSE: COL) and Spirit AeroSystems (NYSE:SPR) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Dividends

Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Spirit AeroSystems pays an annual dividend of $0.40 per share and has a dividend yield of 0.5%. Rockwell Collins pays out 21.5% of its earnings in the form of a dividend. Spirit AeroSystems pays out 7.5% 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.

Valuation & Earnings

This table compares Rockwell Collins and Spirit AeroSystems’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rockwell Collins $6.82 billion 3.20 $705.00 million $6.15 21.63
Spirit AeroSystems $6.98 billion 1.32 $354.90 million $5.35 15.05

Rockwell Collins has higher earnings, but lower revenue than Spirit AeroSystems. Spirit AeroSystems is trading at a lower price-to-earnings ratio than Rockwell Collins, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

67.6% of Rockwell Collins shares are owned by institutional investors. Comparatively, 97.4% of Spirit AeroSystems shares are owned by institutional investors. 1.1% of Rockwell Collins shares are owned by insiders. Comparatively, 0.9% of Spirit AeroSystems shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Rockwell Collins has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, Spirit AeroSystems has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Rockwell Collins and Spirit AeroSystems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Collins 1 16 3 0 2.10
Spirit AeroSystems 1 4 13 0 2.67

Rockwell Collins presently has a consensus target price of $130.00, indicating a potential downside of 2.29%. Spirit AeroSystems has a consensus target price of $99.11, indicating a potential upside of 23.10%. Given Spirit AeroSystems’ stronger consensus rating and higher possible upside, analysts clearly believe Spirit AeroSystems is more favorable than Rockwell Collins.

Profitability

This table compares Rockwell Collins and Spirit AeroSystems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rockwell Collins 10.99% 19.58% 6.43%
Spirit AeroSystems 5.08% 34.03% 11.52%

Summary

Spirit AeroSystems beats Rockwell Collins on 9 of the 16 factors compared between the two stocks.

Rockwell Collins Company Profile

Rockwell Collins, Inc. designs, produces, and supports communications and aviation systems worldwide. The company's Interior Systems segment offers commercial aircraft seats; galley structures, food and beverage preparation equipment, and water and waste systems; oxygen and passenger service equipment; cabin lighting systems; and business jet and general aviation interior products. Its Commercial Systems segment provides cabin management systems; data link, frequency, very high frequency, and satellite communications systems; landing, radio navigation, and geophysical sensors, and flight management systems; situational awareness and surveillance systems and products; integrated flight controls; simulation and training systems; maintenance, repair, parts, and after-sales support services, and aftermarket used equipment. The company's Government Systems segment provides communications systems and products; radio navigation products, global positioning system equipment, and multi-mode receivers; avionics systems; precision targeting, electronic warfare, and training systems; simulation and training systems; space wheels; visual system products; maintenance, repair, parts, and after-sales support services, and aftermarket used equipment. Its Information Management Services segment offers voice and data communication services; flight support services; airport communications and information systems; train dispatching and information systems; mission critical security systems; and cabin connectivity solutions. The company serves original equipment manufacturers of commercial air transport, business and regional aircraft, commercial airlines, U.S. Department of Defense, other ministries of defense, other government agencies, defense contractors, the U.S. Federal Aviation Administration, and passenger and freight railroads, as well as airport, critical infrastructure, and business aircraft operators. The company was founded in 1933 and is headquartered in Cedar Rapids, Iowa.

Spirit AeroSystems Company Profile

Spirit AeroSystems Holdings, Inc., through its subsidiaries, designs, manufactures, and supplies commercial aero structures worldwide. It operates through three segments: Fuselage Systems, Propulsion Systems, and Wing Systems. The Fuselage Systems segment develops, produces, and markets forward, mid, and rear fuselage sections and systems primarily to aircraft original equipment manufacturers (OEMs); and offers related spares and maintenance, repairs, and overhaul (MRO) services. The Propulsion Systems segment offers struts/pylons; nacelles, including thrust reversers; and related engine structural components primarily to aircraft or engine OEMs, as well as related spares and MRO services. The Wing Systems provides wings and wing components, such as flight control surfaces; and other miscellaneous structural parts primarily to aircraft OEMs, as well as related spares and MRO services. It also offers low observables comprising radar absorbent and translucent materials; rotorcrafts that include forward cockpits and cabins; and other military services, which comprise fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.

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