Exelis (NYSE:XLS) vs. Its Rivals Critical Analysis

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

Profitability

This table compares Exelis and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exelis 7.52% 18.51% 4.87%
Exelis Competitors -6.61% 25.35% 3.38%

Institutional & Insider Ownership

72.0% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 6.6% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Exelis and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Exelis N/A N/A 20.07
Exelis Competitors $9.16 billion $688.88 million 631.02

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Exelis and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exelis 0 0 0 0 N/A
Exelis Competitors 509 2285 2504 93 2.40

As a group, “Aerospace & Defense” companies have a potential upside of 4.18%. Given Exelis’ peers higher possible upside, analysts clearly believe Exelis has less favorable growth aspects than its peers.

Summary

Exelis peers beat Exelis on 6 of the 8 factors compared.

Exelis Company Profile

Exelis Inc. (Exelis) is a diversified aerospace, defense, information and services company. The Company delivers mission-critical solutions to military, government and commercial customers in the United States and globally. It operates in two segments: Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) Electronics and Systems, and Information and Technical Services. Its C4ISR Electronics and Systems segment provides engineered systems and solutions, including: ISR systems; integrated electronic warfare systems; radar and sonar systems; electronic attack and release systems; communications solutions; space systems, and composite aerostructures. The Company’s Information and Technical Services segment provides a range of service solutions: systems integration; network design and development; air traffic management; cyber; intelligence; advanced engineering, and space launch and range-support.

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