Financial Comparison: Park Electrochemical (NYSE:PKE) versus Ducommun (NYSE:DCO)

Park Electrochemical (NYSE:PKE) and Ducommun (NYSE:DCO) are both small-cap aerospace companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, analyst recommendations, risk, profitability and valuation.

Valuation and Earnings

This table compares Park Electrochemical and Ducommun’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Park Electrochemical $51.12 million 6.43 $113.54 million N/A N/A
Ducommun $629.31 million 0.76 $9.03 million $1.99 20.86

Park Electrochemical has higher earnings, but lower revenue than Ducommun.

Profitability

This table compares Park Electrochemical and Ducommun’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Park Electrochemical 181.69% 6.96% 5.97%
Ducommun 3.47% 10.70% 4.30%

Risk & Volatility

Park Electrochemical has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Ducommun has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Park Electrochemical and Ducommun, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Park Electrochemical 0 0 0 0 N/A
Ducommun 0 3 2 0 2.40

Ducommun has a consensus price target of $48.40, suggesting a potential upside of 16.57%. Given Ducommun’s higher possible upside, analysts clearly believe Ducommun is more favorable than Park Electrochemical.

Institutional and Insider Ownership

82.9% of Park Electrochemical shares are owned by institutional investors. Comparatively, 83.0% of Ducommun shares are owned by institutional investors. 8.4% of Park Electrochemical shares are owned by company insiders. Comparatively, 8.5% of Ducommun shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Ducommun beats Park Electrochemical on 7 of the 12 factors compared between the two stocks.

Park Electrochemical Company Profile

Park Electrochemical Corp., through its subsidiaries, develops, manufactures, markets, and sells high-technology digital and radio frequency/microwave printed circuit material products primarily for the telecommunications and Internet infrastructure, enterprise, and military/aerospace markets. It also designs, develops, and manufactures advanced composite materials, primary and secondary structures and assemblies, and low-volume tooling products for the aerospace markets. The company's advanced electronics materials are used to fabricate complex multilayer printed circuit boards and other electronic interconnect systems, including backplanes, high speed/low loss multilayers, and high density interconnects. It markets and sells its electronics materials to independent printed circuit board fabricators, electronic manufacturing service companies, and electronic contract manufacturers, as well as electronic original equipment manufacturers in the computer, networking, telecommunications, wireless communications, aerospace, military, instrumentation, and automotive industries. The company has operations in North America, Europe, and Asia. Park Electrochemical Corp. was founded in 1954 and is headquartered in Melville, New York.

Ducommun Company Profile

Ducommun Incorporated provides engineering and manufacturing products and services primarily to the aerospace, defense, industrial, natural resources, medical, and other industries in the United States. The company operates through two segments, Electronic Systems and Structural Systems. The Electronic Systems segment offers cable assemblies and interconnect systems; printed circuit board assemblies; high-level electronic, electromechanical, and mechanical components and assemblies, as well as lightning diversion systems; and radar enclosures, aircraft avionics racks, shipboard communications and control enclosures, wire harnesses, surge suppressors, conformal shields, and other assemblies. It also supplies engineered products, including illuminated pushbutton switches and panels for aviation and test systems; microwave and millimeter switches and filters for radio frequency systems and test instrumentation; and motors and resolvers for motion control. In addition, this segment provides engineering expertise for aerospace system design, development, integration, and testing. The Structural Systems segment designs, engineers, and manufactures contoured aluminum, titanium, and Inconel aero structure components; structural assembly products, such as winglets, engine components, and fuselage structural panels; and metal and composite bonded structures and assemblies comprising aircraft wing spoilers, large fuselage skins, rotor blades on rotary-wing aircraft and components, flight control surfaces, and engine components. The company serves commercial aircraft, military fixed-wing aircraft, military and commercial rotary-wing aircraft, and space programs, as well as industrial, medical, and other end-use markets. Ducommun Incorporated was founded in 1849 and is headquartered in Santa Ana, California.

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