Moog (MOG.B) versus Eaton (ETN) Critical Contrast

Moog (NYSE:MOG.B) and Eaton (NYSE:ETN) are both aerospace companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Institutional & Insider Ownership

0.2% of Moog shares are owned by institutional investors. Comparatively, 77.3% of Eaton shares are owned by institutional investors. 3.0% of Moog shares are owned by company insiders. Comparatively, 0.5% of Eaton shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Moog and Eaton’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Moog $2.71 billion 1.09 $96.51 million N/A N/A
Eaton $20.40 billion 1.56 $2.99 billion $4.65 15.79

Eaton has higher revenue and earnings than Moog.

Dividends

Moog pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. Eaton pays an annual dividend of $2.64 per share and has a dividend yield of 3.6%. Eaton pays out 56.8% of its earnings in the form of a dividend. Eaton has raised its dividend for 8 consecutive years. Eaton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Moog has a beta of 1.71, indicating that its stock price is 71% more volatile than the S&P 500. Comparatively, Eaton has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Moog and Eaton, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Moog 0 0 0 0 N/A
Eaton 2 2 14 0 2.67

Eaton has a consensus target price of $85.81, indicating a potential upside of 16.86%. Given Eaton’s higher possible upside, analysts plainly believe Eaton is more favorable than Moog.

Profitability

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

Net Margins Return on Equity Return on Assets
Moog 3.56% 13.02% 5.29%
Eaton 10.06% 13.48% 7.13%

Summary

Eaton beats Moog on 11 of the 15 factors compared between the two stocks.

Moog Company Profile

Moog Inc. is a designer, manufacturer and integrator of precision motion and fluid controls and systems for a range of applications in aerospace and defense and industrial markets. The Company has five segments: Aircraft Controls, Space and Defense Controls, Industrial Systems, Components and Medical Devices. Its Aircraft Controls segment designs, manufactures and integrates primary and secondary flight controls for military and commercial aircraft, and provides aftermarket support. 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. Its Industrial Systems segment serves a global customer base across various markets. Its Components segment offers slip rings, fiber optic rotary joints, motors, sensors and handpieces product line. Its Medical Devices segment focuses on infusion therapy and enteral clinical nutrition.

Eaton Company Profile

Eaton Corporation plc operates as a power management company worldwide. Its Electrical Products segment offers electrical and industrial components, residential products, single phase power quality products, emergency lighting and fire detection products, wiring devices, structural support systems, and circuit protection and lighting products. The company's Electrical Systems and Services segment provides power distribution and assemblies, three phase power quality products, hazardous duty electrical equipment, explosion-proof instrumentation, utility power distribution equipment, power reliability equipment, and services. Its Hydraulics segment offers various power products, controls and sensing products, fluid conveyance products, filtration systems solutions, industrial drum and disc brakes, and golf grips. The company's Aerospace segment provides hydraulic power generation systems, controls and sensing products, fluid conveyance products, and fuel systems for commercial and military use. Its Vehicle segment designs, manufactures, markets, and supplies drivetrain and powertrain systems, and critical components, including transmissions, clutches, hybrid power systems, superchargers, engine valves and valve actuation systems, cylinder heads, locking and limited slip differentials, transmission controls, fuel vapor components, fluid connectors, and conveyance products. The company serves industrial, institutional, governmental, utility, commercial, residential, information technology, renewable energy, marine, agriculture, oil and gas, construction, mining, forestry, material handling, truck and bus, machine tools, molding, primary metals, and power generation markets, as well as original equipment manufacturers and aftermarket customers of heavy, medium, and light-duty trucks, SUVs, CUVs, passenger cars, and agricultural equipment. Eaton Corporation plc was founded in 1916 and is based in Dublin, Ireland.

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