Moog (MOG) vs. Raytheon (RTN) Critical Contrast

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

Earnings & Valuation

This table compares Moog and Raytheon’s revenue, earnings per share 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
Raytheon $25.35 billion 2.48 $2.02 billion $6.94 31.45

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

Dividends

Raytheon pays an annual dividend of $3.19 per share and has a dividend yield of 1.5%. Moog does not pay a dividend. Raytheon pays out 46.0% of its earnings in the form of a dividend. Moog has raised its dividend for 13 consecutive years.

Risk and Volatility

Moog has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Raytheon has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Institutional & Insider Ownership

72.0% of Raytheon shares are held by institutional investors. 0.2% of Raytheon shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Moog and Raytheon’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%
Raytheon 7.98% 21.36% 7.40%

Analyst Ratings

This is a summary of recent recommendations and price targets for Moog and Raytheon, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moog 1 0 0 0 1.00
Raytheon 0 1 14 0 2.93

Moog presently has a consensus target price of $82.00, suggesting a potential downside of 0.94%. Raytheon has a consensus target price of $215.73, suggesting a potential downside of 1.15%. Given Moog’s higher probable upside, equities analysts plainly believe Moog is more favorable than Raytheon.

Summary

Raytheon beats Moog on 11 of the 15 factors compared between the two stocks.

About Moog

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.

About Raytheon

Raytheon Company is a technology company, which specializes in defense and other government markets. The Company develops integrated products, services and solutions in various markets, including sensing; effects; command, control, communications, computers, cyber and intelligence; mission support, and cybersecurity. The Company operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS), and Forcepoint. The IDS segment develops and produces sensors and mission systems. The IIS segment provides a range of technical and professional services to intelligence, defense, federal and commercial customers. The MS segment is a developer, integrator and producer of missile and combat systems. The SAS segment is engaged in the design, development and manufacture of integrated sensor and communication systems for missions. The Forcepoint segment develops cybersecurity products.

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