Moog (MOG) and Cubic (CUB) Critical Contrast

Moog (NYSE: MOG) and Cubic (NYSE:CUB) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Insider & Institutional Ownership

86.3% of Cubic shares are held by institutional investors. 7.9% of Cubic shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Moog and Cubic, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moog 1 0 0 0 1.00
Cubic 0 1 4 0 2.80

Moog currently has a consensus price target of $82.00, suggesting a potential downside of 0.94%. Cubic has a consensus price target of $61.00, suggesting a potential upside of 0.08%. Given Cubic’s stronger consensus rating and higher probable upside, analysts clearly believe Cubic is more favorable than Moog.

Dividends

Cubic pays an annual dividend of $0.27 per share and has a dividend yield of 0.4%. Moog does not pay a dividend. Cubic pays out -32.5% of its earnings in the form of a dividend.

Risk and Volatility

Moog has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Cubic has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Valuation and Earnings

This table compares Moog and Cubic’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moog N/A N/A N/A $3.09 26.79
Cubic $1.49 billion 1.12 -$11.20 million ($0.83) -73.43

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

Profitability

This table compares Moog and Cubic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Moog 0.21% 0.43% 0.17%
Cubic -1.21% -1.27% -0.63%

Summary

Cubic beats Moog on 8 of the 14 factors compared between the two stocks.

Moog Company Profile

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. Its Space and Defense Controls segment provides controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

Cubic Company Profile

Cubic Corporation (Cubic) designs, integrates and operates systems, products and services that provide situational awareness for its customers in the transportation and defense industries. The Company operates in three business segments across the global transportation and defense markets, which include Cubic Transportation Systems (CTS), Cubic Global Defense (CGD) and Cubic Global Defense Services (CGD Services). The Company’s CTS segment is a systems integrator of payment and information technology and services for travel solutions. The Company’s CGD Systems is focused on two primary lines of business: training systems and secure communications (SC) products. The Company’s CGD Services segment is a provider of training, operations, intelligence, maintenance, technical and other support services to the United States government and its agencies and allied nations. It also provides cross-domain hardware solutions to address multi-level security challenges across common networks.

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