Head to Head Review: Ducommun (DCO) and The Competition

Ducommun (NYSE:DCO) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its rivals? We will compare Ducommun to similar companies based on the strength of its institutional ownership, dividends, analyst recommendations, earnings, valuation, profitability and risk.

Valuation and Earnings

This table compares Ducommun and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ducommun	$824.73 million	-$37.35 million	44.95
Ducommun Competitors	$8.44 billion	$569.54 million	25.72

Ducommun’s rivals have higher revenue and earnings than Ducommun. Ducommun is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Ducommun and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ducommun	5.89%	9.52%	5.37%
Ducommun Competitors	-348.96%	-46.51%	-4.31%

Volatility and Risk

Ducommun has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Ducommun’s rivals have a beta of 1.31, meaning that their average stock price is 31% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for Ducommun and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ducommun	0	3	5	0	2.62
Ducommun Competitors	2157	8270	12791	581	2.50

Ducommun presently has a consensus target price of $196.67, indicating a potential upside of 31.79%. As a group, “Aerospace & Defense” companies have a potential upside of 26.84%. Given Ducommun’s stronger consensus rating and higher possible upside, research analysts plainly believe Ducommun is more favorable than its rivals.

Institutional & Insider Ownership

92.2% of Ducommun shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 5.0% of Ducommun shares are held by company insiders. Comparatively, 11.8% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Ducommun beats its rivals on 8 of the 13 factors compared.

Ducommun Company Profile

Ducommun Inc. is a provider of engineering and manufacturing services for the aerospace, defense and industrial markets. Founded in 1849 in Los Angeles, the company began as a hardware business before expanding into manufacturing components for aerospace and defense applications. Ducommun operates through its Electronic Systems and Structural Systems businesses. Its products and services include electronic and electromechanical assemblies, circuit-card assemblies, interconnect systems, precision-machined parts, structural components and composite assemblies.