Huntington Ingalls Industries (NYSE: HII) and Marine Products (NYSE:MPX) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
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84.4% of Huntington Ingalls Industries shares are owned by institutional investors. Comparatively, 14.5% of Marine Products shares are owned by institutional investors. 2.2% of Huntington Ingalls Industries shares are owned by company insiders. Comparatively, 77.9% of Marine Products shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
Huntington Ingalls Industries has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Marine Products has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500.
Earnings & Valuation
This table compares Huntington Ingalls Industries and Marine Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Huntington Ingalls Industries||$7.44 billion||1.32||$479.00 million||$12.14||18.14|
|Marine Products||$267.32 million||2.06||$19.30 million||$0.60||26.50|
Huntington Ingalls Industries has higher revenue and earnings than Marine Products. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than Marine Products, indicating that it is currently the more affordable of the two stocks.
Huntington Ingalls Industries pays an annual dividend of $2.88 per share and has a dividend yield of 1.3%. Marine Products pays an annual dividend of $0.40 per share and has a dividend yield of 2.5%. Huntington Ingalls Industries pays out 23.7% of its earnings in the form of a dividend. Marine Products pays out 66.7% 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. Huntington Ingalls Industries has increased its dividend for 5 consecutive years and Marine Products has increased its dividend for 3 consecutive years.
This is a summary of recent recommendations for Huntington Ingalls Industries and Marine Products, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Huntington Ingalls Industries||1||1||7||0||2.67|
Huntington Ingalls Industries currently has a consensus price target of $270.50, indicating a potential upside of 22.86%. Marine Products has a consensus price target of $14.50, indicating a potential downside of 8.81%. Given Huntington Ingalls Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Huntington Ingalls Industries is more favorable than Marine Products.
This table compares Huntington Ingalls Industries and Marine Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Huntington Ingalls Industries||6.80%||34.69%||9.45%|
Huntington Ingalls Industries beats Marine Products on 11 of the 17 factors compared between the two stocks.
About Huntington Ingalls Industries
Huntington Ingalls Industries, Inc. engages in the designing, building, overhauling, and repairing military ships in the United States. It operates through three segments: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships that include deck amphibious ships and transport dock ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in service U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, it provides fleet support services comprising ship technical and waterfront; naval architecture and marine engineering; integrated logistics support; technical documentation development; warehousing, asset management, and material readiness; operational and maintenance training development and delivery; software design and development; IT infrastructure support, and data delivery and management; and cyber security and information assurance services, as well as undersea vehicle and specialized craft development and prototyping services. Additionally, the company offers integrated missions solutions services; nuclear and environmental services; engineering, procurement, and construction management services to the oil and gas industry; nuclear management and operations, and environmental management services to the Department of Energy, Department of Defense, local governments, and the private sector; and unmanned underwater vehicles designing and building services. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.
About Marine Products
Marine Products Corporation designs, manufactures, and sells recreational fiberglass powerboats for the sportboat, deckboat, cruiser, jet boat, and sport fishing markets worldwide. It provides Chaparral sterndrive pleasure boats, including SSi and SSX sportboats, Sunesta sportdecks, Signature cruisers, SunCoast sportdeck outboards, Vortex Jet Boats, and Robalo outboard sport fishing boats, as well as H2O Sport, and Fish and Ski boats. The company sells its products to a network of 161 domestic and 92 international independent authorized dealers. Marine Products Corporation was founded in 1965 and is based in Atlanta, Georgia.