Rockwell Collins (NYSE: COL) is one of 44 publicly-traded companies in the “Aerospace & Defense” industry, but how does it weigh in compared to its peers? We will compare Rockwell Collins to similar companies based on the strength of its dividends, valuation, analyst recommendations, institutional ownership, risk, earnings and profitability.

Earnings and Valuation

This table compares Rockwell Collins and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Rockwell Collins $6.07 billion $1.35 billion 26.08
Rockwell Collins Competitors $8.56 billion $1.20 billion 80.96

Rockwell Collins’ peers have higher revenue, but lower earnings than Rockwell Collins. Rockwell Collins is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rockwell Collins and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rockwell Collins 1 16 3 0 2.10
Rockwell Collins Competitors 554 2280 2426 91 2.38

Rockwell Collins presently has a consensus price target of $121.22, indicating a potential downside of 8.32%. As a group, “Aerospace & Defense” companies have a potential upside of 2.83%. Given Rockwell Collins’ peers stronger consensus rating and higher probable upside, analysts plainly believe Rockwell Collins has less favorable growth aspects than its peers.

Profitability

This table compares Rockwell Collins and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rockwell Collins 11.52% 26.20% 7.76%
Rockwell Collins Competitors -5.04% 25.16% 3.96%

Volatility and Risk

Rockwell Collins has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Rockwell Collins’ peers have a beta of 1.06, indicating that their average share price is 6% more volatile than the S&P 500.

Institutional & Insider Ownership

72.3% of Rockwell Collins shares are held by institutional investors. Comparatively, 70.2% of shares of all “Aerospace & Defense” companies are held by institutional investors. 1.5% of Rockwell Collins shares are held by company insiders. Comparatively, 7.4% 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.

Dividends

Rockwell Collins pays an annual dividend of $1.32 per share and has a dividend yield of 1.0%. Rockwell Collins pays out 26.0% of its earnings in the form of a dividend. As a group, “Aerospace & Defense” companies pay a dividend yield of 1.5% and pay out 36.1% of their earnings in the form of a dividend. Rockwell Collins has raised its dividend for 2 consecutive years.

Summary

Rockwell Collins peers beat Rockwell Collins on 9 of the 15 factors compared.

About Rockwell Collins

Rockwell Collins, Inc. designs, produces and supports communications and aviation systems for commercial and military customers. The Company provides information management services through voice and data communication networks and solutions across the world. The Company operates through three segments: Commercial Systems, Government Systems and Information Management Services. The Commercial Systems segment supplies aviation electronics systems, products and services to customers located throughout the world. The Government Systems segment provides a range of electronic products, systems and services to customers including the United States Department of Defense, various ministries of defense, other government agencies and defense contractors around the world. The Information Management Services segment provides communications services, systems integration and security solutions across the aviation, airport, rail and nuclear security markets.

Receive News & Stock Ratings for Rockwell Collins Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rockwell Collins Inc. and related stocks with our FREE daily email newsletter.