Reviewing Huntington Ingalls Industries (NYSE:HII) and MDA Space (NYSE:MDA)
by Tristan Rich · The Markets DailyHuntington Ingalls Industries (NYSE:HII – Get Free Report) and MDA Space (NYSE:MDA – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
Profitability
This table compares Huntington Ingalls Industries and MDA Space’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Huntington Ingalls Industries | 5.01% | 12.89% | 5.26% |
| MDA Space | 5.68% | 9.42% | 4.20% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Huntington Ingalls Industries and MDA Space, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Huntington Ingalls Industries | 0 | 5 | 5 | 0 | 2.50 |
| MDA Space | 0 | 3 | 7 | 1 | 2.82 |
Huntington Ingalls Industries currently has a consensus target price of $364.62, indicating a potential upside of 41.46%. MDA Space has a consensus target price of $50.00, indicating a potential upside of 74.64%. Given MDA Space’s stronger consensus rating and higher probable upside, analysts clearly believe MDA Space is more favorable than Huntington Ingalls Industries.
Valuation and Earnings
This table compares Huntington Ingalls Industries and MDA Space”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Huntington Ingalls Industries | $12.48 billion | 0.81 | $605.00 million | $16.78 | 15.36 |
| MDA Space | $1.17 billion | 3.97 | $77.65 million | $0.54 | 53.02 |
Huntington Ingalls Industries has higher revenue and earnings than MDA Space. Huntington Ingalls Industries is trading at a lower price-to-earnings ratio than MDA Space, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
90.5% of Huntington Ingalls Industries shares are owned by institutional investors. 0.8% of Huntington Ingalls Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
Huntington Ingalls Industries beats MDA Space on 7 of the 13 factors compared between the two stocks.
About Huntington Ingalls Industries
Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare 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 of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.
About MDA Space
MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.