Comparing AeroVironment (AVAV) and Triumph Group (TGI)

AeroVironment (NASDAQ: AVAV) and Triumph Group (NYSE:TGI) are both small-cap aerospace companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

73.7% of AeroVironment shares are held by institutional investors. 11.0% of AeroVironment shares are held by insiders. Comparatively, 2.8% of Triumph Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Triumph Group pays an annual dividend of $0.16 per share and has a dividend yield of 0.6%. AeroVironment does not pay a dividend. Triumph Group pays out -3.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares AeroVironment and Triumph Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AeroVironment $264.87 million 4.66 $12.47 million $1.31 39.50
Triumph Group $3.53 billion 0.39 -$42.95 million ($5.01) -5.54

AeroVironment has higher earnings, but lower revenue than Triumph Group. Triumph Group is trading at a lower price-to-earnings ratio than AeroVironment, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AeroVironment and Triumph Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AeroVironment 0 4 0 0 2.00
Triumph Group 2 5 3 0 2.10

AeroVironment presently has a consensus target price of $39.50, indicating a potential downside of 23.66%. Triumph Group has a consensus target price of $32.89, indicating a potential upside of 18.52%. Given Triumph Group’s stronger consensus rating and higher possible upside, analysts plainly believe Triumph Group is more favorable than AeroVironment.

Profitability

This table compares AeroVironment and Triumph Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AeroVironment 10.42% 8.23% 7.39%
Triumph Group -7.68% 27.59% 5.31%

Volatility & Risk

AeroVironment has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, Triumph Group has a beta of 1.75, indicating that its stock price is 75% more volatile than the S&P 500.

AeroVironment Company Profile

AeroVironment, Inc. designs, develops, produces, supports and operates a portfolio of products and services for government agencies, businesses and consumers. The Company operates through two segments: Unmanned Aircraft Systems (UAS), which focuses primarily on the design, development, production, support and operation of UAS and tactical missile systems that provide situational awareness, multi-band communications, force protection and other mission effects, and Efficient Energy Systems (EES), which focuses primarily on the design, development, production, marketing, support and operation of electric energy systems. The Company supplies UAS, tactical missile systems and related services primarily to organizations within the United States Department of Defense (DoD). The Company also supplies charging systems and services for electric vehicles (EVs), and power cycling and test systems to commercial, consumer and government customers.

Triumph Group Company Profile

Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls and distributes a portfolio of aircraft components, accessories, subassemblies and systems. The Company offers a range of products and services to the aerospace industry through three segments: Triumph Aerostructures Group, whose companies are engaged in the design, manufacture, assembly and integration of metallic and composite aerostructures and structural components for the aerospace original equipment manufacturer (OEM) market; Triumph Aerospace Systems Group, whose companies design, engineer and manufacture a range of build-to-print components, assemblies and systems also for the OEM market, and Triumph Aftermarket Services Group, whose companies serve aircraft fleets, such as commercial airlines, the United States military and cargo carriers, through the maintenance, repair and overhaul (MRO) of aircraft components and accessories manufactured by third parties.

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