Critical Analysis: L3Harris (NYSE:LHX) and Teledyne Technologies (NYSE:TDY)

L3Harris (NYSE:LHX) and Teledyne Technologies (NYSE:TDY) are both large-cap aerospace companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.

Dividends

L3Harris pays an annual dividend of $2.74 per share and has a dividend yield of 1.3%. Teledyne Technologies does not pay a dividend. L3Harris pays out 33.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares L3Harris and Teledyne Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
L3Harris $6.80 billion 3.66 $949.00 million $8.29 25.44
Teledyne Technologies $2.90 billion 3.77 $333.80 million $8.88 33.88

L3Harris has higher revenue and earnings than Teledyne Technologies. L3Harris is trading at a lower price-to-earnings ratio than Teledyne Technologies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

L3Harris has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Teledyne Technologies has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Profitability

This table compares L3Harris and Teledyne Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
L3Harris 13.95% 29.27% 10.17%
Teledyne Technologies 12.04% 15.09% 8.69%

Institutional & Insider Ownership

94.9% of L3Harris shares are held by institutional investors. Comparatively, 84.1% of Teledyne Technologies shares are held by institutional investors. 2.5% of L3Harris shares are held by insiders. Comparatively, 3.2% of Teledyne Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for L3Harris and Teledyne Technologies, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
L3Harris 0 1 8 0 2.89
Teledyne Technologies 0 0 3 0 3.00

L3Harris currently has a consensus price target of $235.41, suggesting a potential upside of 11.64%. Teledyne Technologies has a consensus price target of $306.00, suggesting a potential upside of 1.71%. Given L3Harris’ higher possible upside, research analysts plainly believe L3Harris is more favorable than Teledyne Technologies.

Summary

L3Harris beats Teledyne Technologies on 9 of the 16 factors compared between the two stocks.

L3Harris Company Profile

L3Harris Technologies, Inc. provides technology-based solutions that solve government and commercial customers' mission-critical challenges in the United States and internationally. The company operates in three segments: Communication Systems, Electronic Systems, and Space and Intelligence Systems. It designs, develops, and manufactures radio communications products and systems, including single channel ground and airborne radio systems, multiband manpack and handheld radios, multi-channel manpack and airborne radios, and single-channel airborne radios, as well as wideband rifleman team, ground, and high frequency manpack radios. The company also offers vision-enhancing products; wireless communications systems; and Internet protocol based voice and data communications systems, as well as single-band land mobile radio terminals and multiband radios comprising a handheld radio and a full-spectrum mobile radio for vehicles. In addition, it provides electronic warfare, avionics, command, control, communications, computers, intelligence, surveillance, and reconnaissance solutions for defense and classified customers; and mission-critical communication systems for civil and military aviation and other customers. Further, the company offers intelligence, space protection, geospatial, earth observation, exploration, positioning, navigation and timing, and environmental solutions using advanced sensors, antennas, and payloads, as well as ground processing and information analytics for national security, defense, civil and commercial customers. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is headquartered in Melbourne, Florida.

Teledyne Technologies Company Profile

Teledyne Technologies Incorporated provides instrumentation, digital imaging, aerospace and defense electronics, and engineered systems in the United States, the United Kingdom, Denmark, Canada, France, and the Netherlands. The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks deployed in mission critical and harsh environments. Its Digital Imaging segment provides image sensors and digital cameras for use in industrial, scientific, and medical applications; and hardware and software for image processing and automatic data collection in industrial and medical applications, as well as manufacturing services for micro electro-mechanical systems. This segment also offers light detection and ranging systems; focal plane arrays, sensors, and subsystems; and geospatial software products. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics; environment interconnects; data acquisition and communications equipment for aircraft; components and subsystems for wireless and satellite communications; and general aviation batteries. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and small gas turbine engines. The company markets and sells its products and services through sales forces, third-party distributors, and commissioned sales representatives. Teledyne Technologies Incorporated was founded in 1960 and is headquartered in Thousand Oaks, California.

Receive News & Ratings for L3Harris Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for L3Harris and related companies with MarketBeat.com's FREE daily email newsletter.