Analyzing Goodrich (GR) and Its Competitors

Goodrich (NYSE: GR) is one of 43 public companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare Goodrich to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a summary of recent ratings for Goodrich and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Goodrich 0 0 0 0 N/A
Goodrich Competitors 482 2205 2413 87 2.41

As a group, “Aerospace & Defense” companies have a potential upside of 13.67%. Given Goodrich’s competitors higher possible upside, analysts plainly believe Goodrich has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Goodrich and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Goodrich N/A N/A 0.02
Goodrich Competitors $8.89 billion $721.62 million 198.67

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

Profitability

This table compares Goodrich and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Goodrich N/A N/A N/A
Goodrich Competitors -6.52% 22.41% 3.44%

Insider and Institutional Ownership

73.3% of shares of all “Aerospace & Defense” companies are held by institutional investors. 6.7% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Goodrich has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, Goodrich’s competitors have a beta of 1.06, indicating that their average stock price is 6% more volatile than the S&P 500.

Summary

Goodrich competitors beat Goodrich on 7 of the 8 factors compared.

Goodrich Company Profile

Goodrich Corporation (Goodrich) is a supplier of aerospace components, systems and services to the commercial and general aviation airplane markets. Goodrich also is a supplier of systems and products to the defense and space markets. Its business is conducted globally with manufacturing, service and sales undertaken in various locations worldwide. Goodrich’s operates in three business segments: the Actuation and Landing Systems segment, the Nacelles and Interior Systems segment and the Electronic Systems segment. Its key products include actuation systems, landing gear, aircraft wheels and brakes, nacelles, interiors, engine control systems, intelligence surveillance and reconnaissance systems, sensor systems and power systems. On May 12, 2011, it acquired Microtecnica S.r.l. On September 30, 2011, the Company acquired Winslow Marine Products Corporation. In July 2012, United Technologies Corporation acquired Goodrich.

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