Comparing GE Aerospace (NYSE:GE) & Moog (NYSE:MOG.A)

GE Aerospace (NYSE:GE) and Moog (NYSE:MOG.A) are both large-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares GE Aerospace and Moog’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GE Aerospace	17.72%	40.56%	5.84%
Moog	8.73%	17.67%	7.94%

Earnings and Valuation

This table compares GE Aerospace and Moog”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GE Aerospace	$45.85 billion	7.54	$8.70 billion	$8.49	39.24
Moog	$3.86 billion	3.03	$235.03 million	$11.76	31.42

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for GE Aerospace and Moog, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GE Aerospace	1	2	16	0	2.79
Moog	0	0	3	0	3.00

GE Aerospace currently has a consensus price target of $390.59, suggesting a potential upside of 17.23%. Moog has a consensus price target of $462.33, suggesting a potential upside of 25.12%. Given Moog’s stronger consensus rating and higher probable upside, analysts plainly believe Moog is more favorable than GE Aerospace.

Institutional and Insider Ownership

74.8% of GE Aerospace shares are owned by institutional investors. Comparatively, 88.0% of Moog shares are owned by institutional investors. 0.2% of GE Aerospace shares are owned by insiders. Comparatively, 1.5% of Moog 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.

Dividends

GE Aerospace pays an annual dividend of $1.88 per share and has a dividend yield of 0.6%. Moog pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. GE Aerospace pays out 22.1% of its earnings in the form of a dividend. Moog pays out 10.2% 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. GE Aerospace has increased its dividend for 2 consecutive years. GE Aerospace is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

GE Aerospace has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, Moog has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Summary

GE Aerospace beats Moog on 10 of the 17 factors compared between the two stocks.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.

About Moog

Moog Inc. designs, manufactures, and integrates precision motion and fluid controls and controls systems for original equipment manufacturers and end users in the aerospace, defense, and industrial markets worldwide. The company's Aircrafts Controls segment offers primary and secondary flight controls for military and commercial aircrafts; aftermarket support services; and ground-based navigation aids. 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; and gun aiming, stabilization, and automatic ammunition loading for armored combat vehicles. This segment also offers controls for steering tactical and strategic missiles, and naval surface ships and submarines; and weapons stores management systems for light attack aerial reconnaissance, ground, and sea platforms, as well as slip rings, fiber optic rotary joints, and motors. The company's Industrial Systems segment provides components and systems for applications in injection and blow molding machinery, metal forming presses, and heavy industry customers in steel and aluminum production; supplies electromechanical motion simulation bases for the flight simulation and training applications; and supplies solutions for power generation applications, as well as custom test systems and controls for automotive, structural, and fatigue testing. This segment also offers systems and components for applications in oil and gas exploration and production; components for wind turbine applications; components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy, and enteral clinical nutrition; and hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors, and infusion and enteral pumps. The company was founded in 1951 and is headquartered in East Aurora, New York.