Comparing Exelis (XLS) & Arconic (ARNC)

Exelis (NYSE: XLS) and Arconic (NYSE:ARNC) are both companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Insider and Institutional Ownership

80.5% of Arconic shares are owned by institutional investors. 0.1% of Arconic shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Exelis and Arconic’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Exelis 7.52% 18.51% 4.87%
Arconic -0.57% 11.29% 3.20%

Analyst Ratings

This is a breakdown of current recommendations for Exelis and Arconic, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Exelis 0 0 0 0 N/A
Arconic 0 4 5 0 2.56

Arconic has a consensus target price of $29.78, indicating a potential upside of 32.11%. Given Arconic’s higher probable upside, analysts plainly believe Arconic is more favorable than Exelis.

Dividends

Arconic pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Exelis does not pay a dividend. Arconic pays out 19.7% of its earnings in the form of a dividend.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Exelis N/A N/A N/A N/A N/A
Arconic $12.96 billion 0.84 -$74.00 million $1.22 18.48

Exelis has higher earnings, but lower revenue than Arconic.

Summary

Arconic beats Exelis on 6 of the 10 factors compared between the two stocks.

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.

Arconic Company Profile

Arconic Inc. engineers, manufactures, and sells lightweight metals of aluminum, titanium, and nickel worldwide. It operates through three segments: Engineered Products and Solutions, Global Rolled Products, and Transportation and Construction Solutions. The Engineered Products and Solutions produces and sells fastening systems and seamless rolled rings; investment castings, including airfoils and forged jet engine components; and extruded, machined, and formed aircraft parts, as well as various forged, extruded, and machined metal products. This segment serves commercial and defense aerospace, commercial transportation, and power generation end markets. The Global Rolled Products segment produces and sells aluminum sheets and plates; and aseptic foils. This segment serves commercial and defense aerospace, commercial transportation, and power generation end markets. The Transportation and Construction Solutions segment produces and sells integrated aluminum structural systems, architectural extrusions, and forged aluminum commercial vehicle wheels, as well as aluminum products for the industrial products end market. This segment serves nonresidential building and construction, and commercial transportation end markets. The company sells its products directly to customers and through distributors. Arconic Inc. was founded in 2016 and is based in New York, New York.

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