Elbit Systems (ESLT) and Rockwell Collins (COL) Head-To-Head Contrast

Elbit Systems (NASDAQ: ESLT) and Rockwell Collins (NYSE:COL) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

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11.8% of Elbit Systems shares are owned by institutional investors. Comparatively, 67.7% of Rockwell Collins shares are owned by institutional investors. 0.8% of Elbit Systems shares are owned by insiders. Comparatively, 1.1% of Rockwell Collins 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.

Earnings & Valuation

This table compares Elbit Systems and Rockwell Collins’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Elbit Systems $3.38 billion 1.48 $239.10 million $6.41 18.20
Rockwell Collins $6.82 billion 3.22 $705.00 million $6.15 21.77

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

Risk and Volatility

Elbit Systems has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Rockwell Collins has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Elbit Systems and Rockwell Collins, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Elbit Systems 0 2 0 0 2.00
Rockwell Collins 1 16 3 0 2.10

Elbit Systems presently has a consensus target price of $110.00, suggesting a potential downside of 5.69%. Rockwell Collins has a consensus target price of $130.00, suggesting a potential downside of 2.91%. Given Rockwell Collins’ stronger consensus rating and higher possible upside, analysts clearly believe Rockwell Collins is more favorable than Elbit Systems.

Profitability

This table compares Elbit Systems and Rockwell Collins’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Elbit Systems 7.08% 16.45% 5.94%
Rockwell Collins 10.99% 19.58% 6.43%

Dividends

Elbit Systems pays an annual dividend of $1.76 per share and has a dividend yield of 1.5%. Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Elbit Systems pays out 27.5% of its earnings in the form of a dividend. Rockwell Collins pays out 21.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Rockwell Collins beats Elbit Systems on 13 of the 16 factors compared between the two stocks.

Elbit Systems Company Profile

Elbit Systems Ltd. develops and supplies a range of airborne, land, and naval systems and products for defense, homeland security, and commercial aviation applications worldwide. The company offers military aircraft and helicopter systems; commercial aviation systems and aero structures; unmanned aircraft systems and unmanned surface vessels; electro-optic and countermeasures systems; land vehicle systems; command, control, communications, computer, and intelligence systems; electronic warfare and signal intelligence systems; and commercial cyber security products. It also provides medical diagnostic equipment, automotive night vision enhancement equipment, and smart glasses for sports applications; and super capacitor energy sources and fuel cells for transportation applications, as well as a range of support services. The company markets its systems and products as a prime contractor or subcontractor to various government and defense and homeland security contractors. Elbit Systems Ltd. was founded in 1966 and is based in Haifa, Israel.

Rockwell Collins Company Profile

Rockwell Collins, Inc. designs, produces, and supports communications and aviation systems worldwide. The company's Interior Systems segment offers commercial aircraft seats; galley structures, food and beverage preparation equipment, and water and waste systems; oxygen and passenger service equipment; cabin lighting systems; and business jet and general aviation interior products. Its Commercial Systems segment provides cabin management systems; data link, frequency, very high frequency, and satellite communications systems; landing, radio navigation, and geophysical sensors, and flight management systems; situational awareness and surveillance systems and products; integrated flight controls; simulation and training systems; maintenance, repair, parts, and after-sales support services, and aftermarket used equipment. The company's Government Systems segment provides communications systems and products; radio navigation products, global positioning system equipment, and multi-mode receivers; avionics systems; precision targeting, electronic warfare, and training systems; simulation and training systems; space wheels; visual system products; maintenance, repair, parts, and after-sales support services, and aftermarket used equipment. Its Information Management Services segment offers voice and data communication services; flight support services; airport communications and information systems; train dispatching and information systems; mission critical security systems; and cabin connectivity solutions. The company serves original equipment manufacturers of commercial air transport, business and regional aircraft, commercial airlines, U.S. Department of Defense, other ministries of defense, other government agencies, defense contractors, the U.S. Federal Aviation Administration, and passenger and freight railroads, as well as airport, critical infrastructure, and business aircraft operators. The company was founded in 1933 and is headquartered in Cedar Rapids, Iowa.

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