Critical Analysis: SIFCO Industries (NYSE:SIF) versus QinetiQ Group (OTCMKTS:QNTQY)

SIFCO Industries (NYSE:SIF) and QinetiQ Group (OTCMKTS:QNTQY) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a summary of current ratings for SIFCO Industries and QinetiQ Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIFCO Industries	0	0	0	0	N/A
QinetiQ Group	0	0	0	0	N/A

Profitability

This table compares SIFCO Industries and QinetiQ Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SIFCO Industries	-10.98%	-24.45%	-8.57%
QinetiQ Group	N/A	N/A	N/A

Earnings and Valuation

This table compares SIFCO Industries and QinetiQ Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SIFCO Industries	$87.02 million	0.22	-$8.69 million	($1.61)	-1.94
QinetiQ Group	N/A	N/A	N/A	($0.26)	-69.52

QinetiQ Group has lower revenue, but higher earnings than SIFCO Industries. QinetiQ Group is trading at a lower price-to-earnings ratio than SIFCO Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

24.2% of SIFCO Industries shares are owned by institutional investors. 28.1% of SIFCO Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

About SIFCO Industries

SIFCO Industries, Inc., together with its subsidiaries, produces and sells forgings and machined components primarily for the aerospace and energy markets in North America and Europe. The company's processes and services include forging, heat-treating, chemical processing, and machining. It also offers original equipment manufacturer and aftermarket components for aircraft and industrial gas turbine engines; steam turbine blades; structural airframe components; aircraft landing gear components; aircraft wheels and brakes; rotating components for helicopters; and commercial/industrial products. In addition, the company provides heat-treatment, surface-treatment, non-destructive testing, and select machining and sub-assembly of forged components. SIFCO Industries, Inc. was founded in 1913 and is headquartered in Cleveland, Ohio.

About QinetiQ Group

QinetiQ Group plc operates as a science and engineering company primarily in the defense, security, and infrastructure markets in the United Kingdom, the United States, Australia, Europe, and internationally. The company operates through EMEA Services and Global Products segments. It offers advanced materials and manufacturing products; artificial intelligence, analytics, and advanced computing technologies; cyber and electromagnetic technologies; human protection and performance systems; novel systems, and weapons and effects; platform and system design and assessment products; power sources, and energy storage and distribution products; robotics and autonomy services; secure communications and navigation systems; and sensing, processing, and data fusion systems. The company also provides testing and evaluation, training and simulation, and cyber and digital resilience services, as well as unmanned air, land, and surface targets. It serves defense, aviation and aerospace, energy and utility, financial services, government, law enforcement, marine, space, and telecommunications sectors. The company was founded in 2001 and is based in Farnborough, the United Kingdom.