Contrasting RocketLab (NASDAQ:RKLB) and Aerojet Rocketdyne (NYSE:AJRD)

Aerojet Rocketdyne (NYSE:AJRD) and RocketLab (NASDAQ:RKLB) are both aerospace companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, risk, valuation and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Aerojet Rocketdyne and RocketLab, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aerojet Rocketdyne 0 4 0 0 2.00
RocketLab 0 1 2 0 2.67

Aerojet Rocketdyne presently has a consensus price target of $53.50, indicating a potential upside of 25.41%. RocketLab has a consensus price target of 22.00, indicating a potential upside of 56.58%. Given RocketLab’s stronger consensus rating and higher possible upside, analysts plainly believe RocketLab is more favorable than Aerojet Rocketdyne.

Profitability

This table compares Aerojet Rocketdyne and RocketLab’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aerojet Rocketdyne 6.09% 38.22% 5.67%
RocketLab N/A N/A N/A

Insider and Institutional Ownership

92.8% of Aerojet Rocketdyne shares are held by institutional investors. Comparatively, 30.5% of RocketLab shares are held by institutional investors. 2.2% of Aerojet Rocketdyne shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Aerojet Rocketdyne and RocketLab’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aerojet Rocketdyne $2.07 billion 1.65 $137.70 million $1.67 25.54
RocketLab N/A N/A -$12.34 million N/A N/A

Aerojet Rocketdyne has higher revenue and earnings than RocketLab.

Summary

Aerojet Rocketdyne beats RocketLab on 7 of the 10 factors compared between the two stocks.

Aerojet Rocketdyne Company Profile

Aerojet Rocketdyne Holdings, Inc. engages in providing solutions in the field of aerospace and defense, as well as in the field of real estate. It operates through the following business segments: Aerospace & Defense, and Real Estate. The Aerospace & Defense segment operates through the Aerojet Rocketdyne, Inc. in developing and manufacturing of aerospace and defense products and systems for the United States government, the National Aeronautics and Space Administration, major aerospace and defense prime contractors as well as portions of the commercial sector. The Real Estate segment operates through Easton Development Company, LLC in re-zoning, entitlement, sale, and leasing of excess real estate assets. The company was founded by William O’Neil on September 29, 1915 and is headquartered in El Segundo, CA.

RocketLab Company Profile

Rocket Lab and Vector entered into a definitive merger agreement.

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