Exelis (NYSE: XLS) and Arconic (NYSE:ARNC) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.
Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Exelis does not pay a dividend. Arconic pays out 72.7% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Exelis and Arconic’s top-line revenue, earnings per share and valuation.
||Earnings Per Share
Exelis has higher earnings, but lower revenue than Arconic. Exelis is trading at a lower price-to-earnings ratio than Arconic, indicating that it is currently the more affordable of the two stocks.
This table compares Exelis and Arconic’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Insider & Institutional Ownership
80.8% of Arconic shares are owned by institutional investors. 0.1% of Arconic shares are owned 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.
This is a summary of recent ratings and recommmendations for Exelis and Arconic, as reported by MarketBeat.
||Strong Buy Ratings
Arconic has a consensus target price of $30.57, suggesting a potential upside of 26.12%. Given Arconic’s higher possible upside, analysts plainly believe Arconic is more favorable than Exelis.
Arconic beats Exelis on 7 of the 12 factors compared between the two stocks.
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.
Arconic Inc., formerly Alcoa Inc., is engaged in lightweight metals engineering and manufacturing. The Company operates through three segments: Global Rolled Products, Engineered Products and Solutions, and Transportation and Construction Solutions. Its multi-material products, which include aluminum, titanium and nickel, are used around the world in markets, such as aerospace, automotive, commercial transportation and packaging. The Global Rolled Products segment produces a range of aluminum sheet and plate products for the aerospace, automotive, commercial transportation, brazing and industrial markets. The Engineered Products and Solutions segment develops and manufactures products for the aerospace (commercial and defense), commercial transportation and power generation end markets. The Transportation and Construction Solutions segment produces products that are used in the non-residential building and construction and commercial transportation end markets.
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