Comparing Magellan Aerospace (OTCMKTS:MALJF) and QinetiQ Group (OTCMKTS:QNTQY)

QinetiQ Group (OTCMKTS:QNTQY) and Magellan Aerospace (OTCMKTS:MALJF) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares QinetiQ Group and Magellan Aerospace”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QinetiQ Group	N/A	N/A	N/A	($0.26)	-95.31
Magellan Aerospace	N/A	N/A	N/A	$0.95	7.27

QinetiQ Group is trading at a lower price-to-earnings ratio than Magellan Aerospace, indicating that it is currently the more affordable of the two stocks.

Dividends

QinetiQ Group pays an annual dividend of $0.50 per share and has a dividend yield of 2.0%. Magellan Aerospace pays an annual dividend of $0.15 per share and has a dividend yield of 2.2%. QinetiQ Group pays out -193.6% of its earnings in the form of a dividend. Magellan Aerospace pays out 15.7% 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for QinetiQ Group and Magellan Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QinetiQ Group	0	0	0	1	4.00
Magellan Aerospace	0	0	1	0	3.00

Magellan Aerospace has a consensus price target of $14.00, indicating a potential upside of 102.17%. Given Magellan Aerospace’s higher probable upside, analysts plainly believe Magellan Aerospace is more favorable than QinetiQ Group.

Profitability

This table compares QinetiQ Group and Magellan Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QinetiQ Group	N/A	N/A	N/A
Magellan Aerospace	N/A	N/A	N/A

Insider & Institutional Ownership

3.9% of Magellan Aerospace shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Magellan Aerospace beats QinetiQ Group on 6 of the 9 factors compared between the two stocks.

About QinetiQ Group

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and infrastructure markets in the United Kingdom, the United States, Australia, Europe, and internationally. The company operates through EMEA Services and Global Products segments. It offers advanced materials and manufacturing products; artificial intelligence, analytics, and advanced computing technologies; cyber and electromagnetic technologies; human protection and performance systems; novel systems, and weapons and effects; platform and system design and assessment products; power sources, and energy storage and distribution products; robotics and autonomy services; secure communications and navigation systems; and sensing, processing, and data fusion systems. The company also provides testing and evaluation, training and simulation, and cyber and digital resilience services, as well as unmanned air, land, and surface targets. It serves defense, aviation and aerospace, energy and utility, financial services, government, law enforcement, marine, space, and telecommunications sectors. The company was founded in 2001 and is based in Farnborough, the United Kingdom.

About Magellan Aerospace

Magellan Aerospace Corporation, through its subsidiaries, engineers and manufactures aeroengine and aerostructure components for aerospace markets in Canada, the United States, and Europe. The company offers aero engine products, such as laser welded honeycomb and filament wound tubes, frames, compressor components, bypass ducts, hot section components, and aeroengine and helicopter drive shafts, as well as other flight safety critical machined components, including discs, seals, and spacers; and aerostructures comprising landing gear systems, wing ribs, spars and skins, bulkheads and fuselage components, tailcone assemblies, composite wing and fairing structures, horizontal and vertical stabilizers, plug and nozzle, exhaust systems, crown modules, and vane boxes and transition ducts. It also designs, engineers, and manufactures assemblies and components, such as stage rocket motors, solid propellant rocket motors, and rocket weapon systems; wire strike protection systems for helicopter safety; space solutions, including small satellite bus platforms and satellite subsystem equipment, as well as offers services for satellite assembly, integration, and testing; and aluminum and magnesium alloy sand castings, such as engine mounted accessory gearbox housings, helicopter power transmission housings, auxiliary power unit inlet and gearbox housings, engine front inlet and intermediate cases, engine front frames and fan cases, pump and accessory drive housings, and environmental control housings. In addition, the company offers maintenance, repair, and overhaul for various engine and components MRO, as well as lifecycle management services to logistics, fleet management, and engineering services. Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada.