Comparing StandardAero (NYSE:SARO) & BWX Technologies (NYSE:BWXT)

StandardAero (NYSE:SARO) and BWX Technologies (NYSE:BWXT) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares StandardAero and BWX Technologies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$6.32 billion	1.36	$277.42 million	$0.97	26.75
BWX Technologies	$3.20 billion	3.42	$328.95 million	$4.08	29.27

BWX Technologies has lower revenue, but higher earnings than StandardAero. StandardAero is trading at a lower price-to-earnings ratio than BWX Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares StandardAero and BWX Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	5.12%	14.52%	5.80%
BWX Technologies	10.41%	31.65%	9.38%

Analyst Ratings

This is a summary of current recommendations for StandardAero and BWX Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	6	7	2	2.73
BWX Technologies	0	5	10	1	2.75

StandardAero presently has a consensus target price of $33.45, suggesting a potential upside of 28.95%. BWX Technologies has a consensus target price of $205.00, suggesting a potential upside of 71.64%. Given BWX Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe BWX Technologies is more favorable than StandardAero.

Institutional & Insider Ownership

94.4% of BWX Technologies shares are owned by institutional investors. 2.1% of StandardAero shares are owned by company insiders. Comparatively, 0.6% of BWX Technologies 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.

Volatility & Risk

StandardAero has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, BWX Technologies has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Summary

BWX Technologies beats StandardAero on 11 of the 15 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About BWX Technologies

BWX Technologies, Inc., together with its subsidiaries, manufactures and sells nuclear components in the United States, Canada, and internationally. It operates through two segments, Government Operations and Commercial Operations. The Government Operations segment designs and manufactures naval nuclear components, reactors, and nuclear fuel; fabrication activities; and supplies proprietary and sole-source valves, manifolds, and fittings to naval and commercial shipping customers. This segment also involved in manufacture of close-tolerance and equipment for nuclear applications; down blend government stockpiles of uranium; receives, stores, characterizes, dissolves, recovers, and purifies uranium-bearing materials; and supplies research reactor fuel elements for colleges, universities, and national laboratories, as well as components for defense applications. The Commercial Operations segment designs and manufactures commercial nuclear steam generators, heat exchangers, pressure vessels, and reactor components; and other auxiliary equipment, including containers for the storage of nuclear fuel and other high-level nuclear waste. This segment also offers nuclear fuel, fuel handling systems, tooling delivery systems, nuclear grade materials, and precisely machined components, and related services for CANDU nuclear power plants; provides in-plant inspection, maintenance, and modification services, as well as non-destructive examination and tooling/repair solutions; and manufactures medical radioisotopes, radiopharmaceuticals, and medical devices. The company was formerly known as The Babcock & Wilcox Company and changed its name to BWX Technologies, Inc. in June 2015. BWX Technologies, Inc. was founded in 1867 and is headquartered in Lynchburg, Virginia.