Analyzing Raytheon (RTN) and Coda Octopus Group (CODA)

Raytheon (NYSE:RTN) and Coda Octopus Group (NASDAQ:CODA) are both aerospace companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Valuation & Earnings

This table compares Raytheon and Coda Octopus Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Raytheon $25.35 billion 1.79 $2.02 billion $7.62 20.89
Coda Octopus Group $18.02 million 3.40 $3.33 million N/A N/A

Raytheon has higher revenue and earnings than Coda Octopus Group.

Profitability

This table compares Raytheon and Coda Octopus Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Raytheon 9.33% 24.43% 8.42%
Coda Octopus Group 9.91% 7.80% 5.66%

Insider and Institutional Ownership

73.2% of Raytheon shares are owned by institutional investors. Comparatively, 5.4% of Coda Octopus Group shares are owned by institutional investors. 0.2% of Raytheon shares are owned by insiders. Comparatively, 1.5% of Coda Octopus Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Raytheon pays an annual dividend of $3.47 per share and has a dividend yield of 2.2%. Coda Octopus Group does not pay a dividend. Raytheon pays out 45.5% of its earnings in the form of a dividend. Raytheon has raised its dividend for 14 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Raytheon and Coda Octopus Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Raytheon 0 2 11 0 2.85
Coda Octopus Group 0 0 0 0 N/A

Raytheon currently has a consensus target price of $225.75, indicating a potential upside of 41.83%. Given Raytheon’s higher probable upside, equities analysts plainly believe Raytheon is more favorable than Coda Octopus Group.

Volatility & Risk

Raytheon has a beta of 0.9, meaning that its share price is 10% less volatile than the S&P 500. Comparatively, Coda Octopus Group has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.

Summary

Raytheon beats Coda Octopus Group on 9 of the 15 factors compared between the two stocks.

Raytheon Company Profile

Raytheon Company develops integrated products, services, and solutions for defense and other government markets worldwide. It operates through five segments: Integrated Defense Systems (IDS); Intelligence, Information and Services (IIS); Missile Systems (MS); Space and Airborne Systems (SAS); and Forcepoint. The IDS segment provides integrated air and missile defense; land and sea-based radar solutions; command, control, communications, computers, cyber, and intelligence solutions; and naval combat and ship electronic systems. The IIS segment offers a range of technical and professional services, such as intelligence, surveillance and reconnaissance, navigation, DoD space and weather, cybersecurity, analytics, training, logistics, mission support, engineering, and automation and sustainment solutions; and air traffic management systems. The MS segment develops and supports a range of weapon systems, including missiles, smart munitions, close-in weapon systems, projectiles, kinetic kill vehicles, directed energy effectors, and combat sensor solutions. The SAS segment provides electro-optical/infrared sensors, airborne radars for surveillance and fire control applications, lasers, precision guidance systems, signals intelligence systems, processors, electronic warfare systems, and communication and space-qualified systems. The Forcepoint segment develops cyber security products comprising insider threat solutions, data loss prevention, firewall technology, cross domain transfer, and cloud and on premise Web and email security products. The company serves the U.S. Department of Defense, the U.S. Intelligence Community, the U.S. Armed Forces, the Federal Aviation Administration, the National Oceanic and Atmospheric Administration, Department of Homeland Security, the National Aeronautics and Space Administration, and other international customers. Raytheon Company was founded in 1922 and is headquartered in Waltham, Massachusetts.

Coda Octopus Group Company Profile

Coda Octopus Group, Inc., together with its subsidiaries, develops and sells underwater technologies and equipment for imaging, mapping, defense, and survey applications in the United States, Europe, and Australia. The company operates through two segments, Marine Engineering Business and Marine Technology Business. It offers CodaOctopus GeoSurvey data acquisition and interpretation software; CodaOctopus GeoSurvey acquisition products, such as hardware and software solutions for field acquisition of sidescan sonar and sub-bottom profiler; and CodaOctopus GeoSurvey productivity suite of software that automates the tasks of analyzing, annotating, and mosaicing complex data sets. The company also provides CodaOctopus instruments for sidescan sonar and sub-bottom profilers; and motion sensing products, which include Octopus F180 and F170 products that bring accurate positioning and motion data into offshore conditions for marine survey applications. In addition, it offers 3D imaging products comprising Echoscope, a real-time 3D imaging sonar that provides 3D images of the underwater environment; Dimension, a 3D sonar for the remotely operated vehicle (ROV) market that provides real-time visualization for subsea vehicle applications; CodaOctopus underwater inspection system; Echoscope C500 for ROV and autonomous underwater vehicle based applications; and Echoscope XD for wider area of view. Further, the company provides engineering services to subsea and prime defense contractors; and rugged visual computers and small-form-factor PCs, rugged touch screen computers, rugged chassis/enclosures, subsea telemetry and data acquisition systems, rugged workstations, analog-to-digital converters, and rugged LCD displays. It markets its products under the CodaOctopus brand name. Coda Octopus Group, Inc. was founded in 1994 and is headquartered in Orlando, Florida. Coda Octopus Group, Inc. is a subsidiary of CCM Holdings LLC.

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