Aerojet Rocketdyne (NYSE:AJRD) and Kaman (NYSE:KAMN) are both aerospace companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Insider and Institutional Ownership
93.1% of Aerojet Rocketdyne shares are owned by institutional investors. Comparatively, 92.0% of Kaman shares are owned by institutional investors. 2.2% of Aerojet Rocketdyne shares are owned by insiders. Comparatively, 1.7% of Kaman shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Aerojet Rocketdyne and Kaman’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aerojet Rocketdyne | 5.94% | 29.26% | 5.08% |
| Kaman | -8.29% | 6.30% | 3.52% |
Risk and Volatility
Aerojet Rocketdyne has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500. Comparatively, Kaman has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.
Earnings and Valuation
This table compares Aerojet Rocketdyne and Kaman’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aerojet Rocketdyne | $2.07 billion | 1.88 | $137.70 million | $1.67 | 29.10 |
| Kaman | $784.46 million | 1.97 | -$69.74 million | $2.11 | 26.38 |
Aerojet Rocketdyne has higher revenue and earnings than Kaman. Kaman is trading at a lower price-to-earnings ratio than Aerojet Rocketdyne, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Aerojet Rocketdyne and Kaman, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aerojet Rocketdyne | 0 | 4 | 2 | 0 | 2.33 |
| Kaman | 0 | 0 | 1 | 0 | 3.00 |
Aerojet Rocketdyne currently has a consensus price target of $54.80, suggesting a potential upside of 12.78%. Kaman has a consensus price target of $65.00, suggesting a potential upside of 16.78%. Given Kaman’s stronger consensus rating and higher probable upside, analysts clearly believe Kaman is more favorable than Aerojet Rocketdyne.
Summary
Aerojet Rocketdyne beats Kaman on 9 of the 14 factors compared between the two stocks.
About Aerojet Rocketdyne
Aerojet Rocketdyne Holdings, Inc. designs, develops, manufactures, and sells aerospace and defense products and systems in the United States. It operates in two segments, Aerospace and Defense, and Real Estate. The Aerospace and Defense segment offers aerospace and defense products and systems for the United States government, including the Department of Defense, the National Aeronautics and Space Administration, and aerospace and defense prime contractors. This segment provides liquid and solid rocket propulsion systems, air-breathing hypersonic engines, and electric power and propulsion systems for space, defense, civil, and commercial applications; and armament systems. The Real Estate segment engages in the re-zoning, entitlement, sale, and leasing of the company's excess real estate assets. It owns 11,394 acres of land adjacent to the United States Highway 50 between Rancho Cordova and Folsom, California east of Sacramento. The company was formerly known as GenCorp Inc. and changed its name to Aerojet Rocketdyne Holdings, Inc. in April 2015. Aerojet Rocketdyne Holdings, Inc. was incorporated in 1915 and is headquartered in El Segundo, California.
About Kaman
Kaman Corporation, together with its subsidiaries, operates in the aerospace, medical, and industrial markets. The company produces and markets aircraft bearings and components; super precision miniature ball bearings; spring energized seals, springs, and contacts; and metallic and composite aero structures for commercial, military, and general aviation fixed and rotary wing aircrafts. It also provides safe and arming solutions for missile and bomb systems for the U.S. and allied militaries; manufactures and supports K-MAX manned and unmanned medium-to-heavy lift helicopters; and restores, modifies, and supports its SH-2G Super Seasprite maritime helicopters. The company operates in North America, Europe, the Middle East, Asia, Oceania, and internationally. Kaman Corporation was incorporated in 1945 and is headquartered in Bloomfield, Connecticut.
