Financial Comparison: Orbital ATK (NYSE:OA) & The Competition

Orbital ATK (NYSE: OA) is one of 43 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its rivals? We will compare Orbital ATK to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Valuation and Earnings

This table compares Orbital ATK and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Orbital ATK $4.46 billion $293.00 million 24.54
Orbital ATK Competitors $8.89 billion $721.62 million 214.93

Orbital ATK’s rivals have higher revenue and earnings than Orbital ATK. Orbital ATK 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.

Profitability

This table compares Orbital ATK and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Orbital ATK 6.62% 17.32% 6.08%
Orbital ATK Competitors -6.55% 22.08% 3.33%

Dividends

Orbital ATK pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Orbital ATK pays out 23.8% 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 36.4% of their earnings in the form of a dividend. Orbital ATK has raised its dividend for 2 consecutive years.

Institutional & Insider Ownership

85.8% of Orbital ATK shares are held by institutional investors. Comparatively, 72.8% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.2% of Orbital ATK shares are held by insiders. Comparatively, 6.7% of shares of all “Aerospace & Defense” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Orbital ATK has a beta of -0.23, suggesting that its stock price is 123% less volatile than the S&P 500. Comparatively, Orbital ATK’s rivals have a beta of 1.09, suggesting that their average stock price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Orbital ATK and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Orbital ATK 0 8 2 0 2.20
Orbital ATK Competitors 508 2247 2460 93 2.40

Orbital ATK currently has a consensus target price of $120.07, suggesting a potential downside of 9.04%. As a group, “Aerospace & Defense” companies have a potential upside of 3.72%. Given Orbital ATK’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Orbital ATK has less favorable growth aspects than its rivals.

Summary

Orbital ATK rivals beat Orbital ATK on 11 of the 15 factors compared.

Orbital ATK Company Profile

Orbital ATK, Inc. is an aerospace and defense systems company and supplier of related products to the United States Government, allied nations, prime contractors and other customers. The Company’s segments include Flight Systems Group, Defense Systems Group, Space Systems Group and Corporate. Its products include launch vehicles and related propulsion systems; satellites and associated components and services; tactical missiles, subsystems and defense electronics, and precision weapons, armament systems and ammunition. The Flight Systems Group segment consists of Launch Vehicles Division, Propulsion Systems Division and Aerospace Structures Division. The Defense Systems Group segment consists of Armament Systems Division, Defense Electronic Division, Missile Products Division and Small Caliber Systems Division. The Space Systems Group consists of Commercial Satellites Division, Government Satellites Division, Space Components Division and Technical Services Division.

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