TXT vs. HEI, TDY, CW, HII, HXL, AVAV, SPR, KTOS, AIR, and TGI
Should you be buying Textron stock or one of its competitors? The main competitors of Textron include HEICO (HEI), Teledyne Technologies (TDY), Curtiss-Wright (CW), Huntington Ingalls Industries (HII), Hexcel (HXL), AeroVironment (AVAV), Spirit AeroSystems (SPR), Kratos Defense & Security Solutions (KTOS), AAR (AIR), and Triumph Group (TGI). These companies are all part of the "aerospace & defense" industry.
HEICO (NYSE:HEI) and Textron (NYSE:TXT) are both large-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, media sentiment, profitability, institutional ownership, earnings, community ranking and risk.
HEICO has a net margin of 12.62% compared to HEICO's net margin of 6.75%. HEICO's return on equity of 16.30% beat Textron's return on equity.
27.1% of HEICO shares are held by institutional investors. Comparatively, 86.0% of Textron shares are held by institutional investors. 8.1% of HEICO shares are held by company insiders. Comparatively, 1.7% of Textron shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
HEICO pays an annual dividend of $0.20 per share and has a dividend yield of 0.1%. Textron pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. HEICO pays out 6.3% of its earnings in the form of a dividend. Textron pays out 1.7% 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. HEICO has increased its dividend for 16 consecutive years. HEICO is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
HEICO has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Textron has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500.
In the previous week, HEICO had 1 more articles in the media than Textron. MarketBeat recorded 13 mentions for HEICO and 12 mentions for Textron. Textron's average media sentiment score of 1.04 beat HEICO's score of 0.29 indicating that HEICO is being referred to more favorably in the media.
Textron received 114 more outperform votes than HEICO when rated by MarketBeat users. Likewise, 68.02% of users gave Textron an outperform vote while only 66.76% of users gave HEICO an outperform vote.
Textron has higher revenue and earnings than HEICO. Textron is trading at a lower price-to-earnings ratio than HEICO, indicating that it is currently the more affordable of the two stocks.
HEICO presently has a consensus price target of $212.44, suggesting a potential downside of 0.30%. Textron has a consensus price target of $99.29, suggesting a potential upside of 15.39%. Given HEICO's higher probable upside, analysts clearly believe Textron is more favorable than HEICO.
Summary
HEICO beats Textron on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TXT and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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