Comparing Precision Castparts (PCP) and Its Peers

Precision Castparts (NYSE: PCP) is one of 41 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Precision Castparts to similar companies based on the strength of its earnings, dividends, risk, valuation, analyst recommendations, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Precision Castparts and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Precision Castparts 0 0 0 0 N/A
Precision Castparts Competitors 482 2163 2382 86 2.41

As a group, “Aerospace & Defense” companies have a potential upside of 13.92%. Given Precision Castparts’ rivals higher possible upside, analysts plainly believe Precision Castparts has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

73.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 6.6% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Precision Castparts pays an annual dividend of $0.12 per share and has a dividend yield of 0.1%. Precision Castparts pays out 1.3% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.4% and pay out 35.9% of their earnings in the form of a dividend.

Profitability

This table compares Precision Castparts and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Precision Castparts 15.17% 12.16% 6.86%
Precision Castparts Competitors -6.96% 22.43% 3.34%

Earnings and Valuation

This table compares Precision Castparts and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Precision Castparts N/A N/A 24.65
Precision Castparts Competitors $8.89 billion $721.62 million 206.72

Precision Castparts’ rivals have higher revenue and earnings than Precision Castparts. Precision Castparts is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Precision Castparts rivals beat Precision Castparts on 6 of the 9 factors compared.

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.

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