Erickson (OTCMKTS:EACIQ) versus Triumph Group (NYSE:TGI) Financial Analysis

Erickson (OTCMKTS:EACIQ) and Triumph Group (NYSE:TGI) are both small-cap manufacturing companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Insider & Institutional Ownership

13.6% of Erickson shares are owned by institutional investors. Comparatively, 94.5% of Triumph Group shares are owned by institutional investors. 55.0% of Erickson shares are owned by insiders. Comparatively, 2.3% of Triumph Group shares are owned 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 summary of recent recommendations for Erickson and Triumph Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Erickson	0	0	0	0	0.00
Triumph Group	2	4	2	0	2.00

Triumph Group has a consensus target price of $16.38, indicating a potential downside of 14.07%. Given Erickson’s higher probable upside, analysts clearly believe Erickson is more favorable than Triumph Group.

Profitability

This table compares Erickson and Triumph Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Erickson	N/A	N/A	N/A
Triumph Group	43.70%	-8.68%	1.35%

Valuation & Earnings

This table compares Erickson and Triumph Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Erickson	N/A	N/A	N/A	N/A	N/A
Triumph Group	$1.19 billion	1.24	$512.38 million	$6.81	2.80

Triumph Group has higher revenue and earnings than Erickson.

Summary

Triumph Group beats Erickson on 6 of the 9 factors compared between the two stocks.

About Erickson

Erickson Incorporated is a provider of aviation services to both commercial and governmental entities in approximately 20 countries. The Company’s operating segments include Commercial Aviation Services, Global Defense and Security, and Manufacturing and Maintenance, Repair and Overhaul (MRO). The Company owns and operates a fleet of aircraft and provides a range of aerial services, including critical supply and logistics for deployed military forces, humanitarian relief, firefighting, timber harvesting, infrastructure construction and crewing. It also maintains a vertically integrated manufacturing capability for the Aircrane and related components, and MRO services for the Aircrane and other aircraft. The Company operates a fleet of light, medium and heavy rotor-wing and fixed-wing aircraft. The Company also leases its aviation services for missions, with customers paying for the aircraft, maintenance, crewing services and fuel to operate the aircraft.

About Triumph Group

Triumph Group, Inc. designs, engineers, manufactures, repairs, overhauls, and distributes aircraft, aircraft components, accessories, subassemblies, and systems worldwide. It operates in two segments, Triumph Systems & Support, and Triumph Interiors. The company offers aircraft and engine-mounted accessory drives, thermal control systems and components, cargo hooks, high lift actuations, cockpit control levers, hydraulic systems and components, control system valve bodies, landing gear actuation systems, electronic engine controls, landing gear components and assemblies, cyber protected process controllers, main engine gearbox assemblies, geared transmissions and drive train components, main fuel pumps, fuel-metering units, primary and secondary flight control systems, and vibration absorbers. It also provides thermo-acoustic insulation systems, environmental control system ducting, and other aircraft interior components. The company serves original equipment manufacturers of commercial, regional, and military aircraft. Triumph Group, Inc. was incorporated in 1993 and is headquartered in Radnor, Pennsylvania.