Head to Head Survey: Leonardo DRS (NASDAQ:DRS) versus Hexcel (NYSE:HXL)\n\nHexcel (NYSE:HXL) and Leonardo DRS (NASDAQ:DRS) are both aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, risk, and earnings.\n\nAnalyst Recommendations\n\nHexcel presently has a consensus price target of $61.67, indicating a potential downside of 0.20%. Leonardo DRS has a consensus price target of $45.86, indicating a potential downside of 4.62%. Given Hexcel’s higher probable upside, equities analysts plainly believe Hexcel is more favorable than Leonardo DRS.\n\nRisk and Volatility\n\nHexcel has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Leonardo DRS has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.\n\nInstitutional and Insider Ownership\n\n95.5% of Hexcel shares are owned by institutional investors. 18.8% of Leonardo DRS shares are owned by institutional investors. 1.4% of Hexcel shares are owned by company insiders. 0.1% of Leonardo DRS shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.\n\nEarnings & Valuation\n\nThis table compares Hexcel and Leonardo DRS’s gross revenue, earnings per share, and valuation.\n\nDividends\n\nHexcel pays an annual dividend of $0.68 per share and has a dividend yield of 1.1%. Leonardo DRS pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Hexcel pays out 63.0% of its earnings in the form of a dividend. Leonardo DRS pays out 41.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Hexcel has increased its dividend for 3 consecutive years. Hexcel is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.\n\nSummary\n\nLeonardo DRS beats Hexcel on 9 of the 17 factors compared between the two stocks.\n\nAbout Hexcel\n\nHexcel Corporation develops, manufactures, and markets carbon fibers, structural reinforcements, honeycomb structures, resins, and composite materials and parts for use in commercial aerospace, space, and defense, and industrial applications. It operates through two segments: Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets fabrics, multi-axials, specialty reinforcements, prepregs, structural adhesives, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blades, recreational products, and other industrial applications, as well as in automotive, marine, and rail transportation. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, rotorcraft blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components used in rotorcraft blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings. This segment also provides interference control materials, structural composites, and services; dielectric absorbers; magnetic absorbers; and thermoplastics for commercial and defense applications.\n\nHexcel Corporation was founded in 1946 and is headquartered in Stamford, Connecticut.

Head to Head Survey: Leonardo DRS (NASDAQ:DRS) versus Hexcel (NYSE:HXL)

A comparison of Hexcel and Leonardo DRS in the aerospace sector, focusing on dividends, institutional ownership, profitability, analyst recommendations, risk, and earnings. Hexcel is rated as the superior stock due to higher dividend yield, stronger institutional ownership, and better analyst consensus, while Leonardo DRS shows lower volatility but weaker financial metrics.