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Astronics vs. Ducommun: Which Aerospace Supplier Is the Better Player Now?
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Increasing aircraft production rates worldwide, along with rising aftermarket jet service, backed by steadily increasing global air travel, are driving demand for aerospace supplier stocks like Astronics Corporation (ATRO - Free Report) and Ducommun Inc. (DCO - Free Report) . Rising defense spending in strengthening nations’ aerial security amid growing geopolitical tensions is also fueling long-term growth for these stocks.
Astronics specializes in innovative electrical power systems, lighting, and inflight connectivity solutions (for both commercial and defense clients) — key components in the modernization of aircraft cabins and cockpit systems. Ducommun, on the other hand, is a global provider of manufacturing and engineering services, developing innovative electronic, engineered and structural solutions for complex applications in aerospace and defense markets.
As innovative technologies like aircraft electrification, production scale-up, and ease in supply chain disruptions are attracting investors to add more aerospace suppliers to their portfolio, one might find it difficult to choose between ATRO and DCO. Let’s delve deeper to get the appropriate answer.
Key Takeaways for ATRO
Recent Achievements: Astronics ended first-quarter 2025 with an 11.3% year-over-year sales improvement, backed by a solid 13.3% surge in its sales to the commercial transport market and an impressive 94.8% improvement in sales to the military aircraft market. The company also achieved record bookings of $279.7 million in the quarter, which resulted in a book-to-bill ratio of 1.36:1.
Among ATRO’s recent achievements, worth mentioning is the contract that it won in April 2025 to provide the Frequency Converter Unit (“FCU”) for the NASA and Boeing Transonic Truss-Braced Wing (“TTBW”) X-66 aircraft demonstrator. In addition to designing the FCU, Astronics will collaborate closely with project stakeholders to support ground and flight tests, slated to start in 2028. Such contract wins should help ATRO generate steady revenue growth over the coming years, as it has done in the latest reported quarter.
Financial Stability: The company ended March 2025 with a cash and cash equivalent of $26 million. While its long-term debt totaled $160 million as of March 2025-end, its current debt was nil. So, it is safe to conclude that the stock boasts a solid solvency position in the near term, which should enable it to duly meet its capital expenditure target of $35-$40 million in 2025.
Notably, a major part of this investment is expected to be dedicated to new product innovation. Technological innovation is a cornerstone of growth strategy for stocks like ATRO, as both the commercial and defense aerospace markets increasingly thrive on next-gen solutions.
Key Takeaways for DCO
Recent Achievement: Ducommun ended the first quarter of 2025 with 1.7% year-over-year revenue growth, backed by strength in the company’s defense business. Its net income for the first quarter improved 53%, primarily driven by higher gross profit.
Looking ahead, strong demand for select missiles, electronic warfare, military radar and military rotary-wing aircraft platforms, along with new programs such as the Next Generation Jammer and AMRAAM ramp-up, is expected to continue to bolster the company’s operational performance in the upcoming quarters.
Financial Stability: The company’s cash and cash equivalents as of March 29, 2025, totaled $31 million. The company’s long-term debt as of March 29, 2025, was $230 million. Although its long-term debt level was more than the company’s cash reserve, its current debt of $13 million as of the same date was quite lower than that. So, we may safely conclude that DCO holds a strong solvency position, at least in the short run, which should enable it to continue with its inventions — a key growth catalyst for capital-intensive aerospace stocks like DCO.
Risks of Investing in ATRO & DCO:
With ATRO and DCO operating in the broader aerospace sector, both these stocks face some industry-specific challenges that one should consider before investing in them.
For 2025, while both Boeing (BA - Free Report) and Airbus have indicated that they expect increases in build rates compared to 2024, the growth (to date) has been slower than initially expected and below pre-pandemic levels. Since both these companies are major OEM clients for ATRO and DCO, the slower ramp-up in aircraft production could dampen commercial revenue growth for both these aerospace suppliers. In fact, DCO did face weak sales from its commercial end-use markets, owing to lower revenues from Boeing 737 MAX and in-flight entertainment products.
Moreover, the recently imposed U.S. import tariffs on many of the nation’s trading partners could cause long-term disruptions in global trade, with the aerospace sector being no exception. This, in turn, may negatively impact the commercial aerospace business of both ATRO and DCO.
How Do Zacks Estimates Compare for ATRO & DCO?
The Zacks Consensus Estimate for ATRO’s 2025 sales and earnings per share (EPS) implies an improvement of 6.4% and 37.6%, respectively, from the year-ago quarter’s reported figures. ATRO’s EPS estimates have shown an upward movement over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DCO’s 2025 sales implies a year-over-year improvement of 4.8%, while that for earnings suggests a 11.6% surge. The stock’s 2025 and 2026 EPS estimates have shown upward movement over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: ATRO vs DCO
ATRO (up 58.9%) has outperformed DCO (up 19.7%) over the past three months. Also, in the past year, ATRO has outperformed DCO. While ATRO’s shares surged 53.3%, DCO rose 20.2%.
Image Source: Zacks Investment Research
Astronics’ Valuation Less Attractive Than Ducommun
Astronics is trading at a premium, with its forward 12-month price/earnings multiple of 19.42X being above DCO’s forward price/earnings multiple of 17.52X. Also, when compared to its one-year median, ATRO is trading at a premium.
Image Source: Zacks Investment Research
ATRO More Leveraged Than DCO
Given that these stocks are facing the brunt of the supply-chain challenge, which is still affecting the commercial aerospace industry, a comparative analysis of their long-term debt-to-capital suggests that ATRO is more debt-ridden than DCO.
Image Source: Zacks Investment Research
ATRO’s ROE Better Than DCO
A comparative analysis of both these stocks’ Return on Equity (ROE) suggests that that ATRO is more efficient at generating profits from its equity base than DCO.
Image Source: Zacks Investment Research
Is ATRO Better Than DCO?
While both Astronics and Ducommun are benefiting from the aerospace sector’s long-term tailwinds, ATRO presents a more compelling investment opportunity at this moment. Astronics is capitalizing on strong momentum across both commercial and military markets, evidenced by double-digit sales growth and record bookings.
In contrast, DCO has faced recent headwinds from weaker sales in its commercial end-use markets, particularly tied to Boeing 737 MAX and in-flight entertainment systems.
Though ATRO is trading at a valuation premium and carries higher leverage than DCO, its superior ROE, outperformance at the bourses, and recent contract wins provide confidence in its growth trajectory. So, investors looking to ride the aerospace upcycle with a high-potential growth stock may consider adding it to their portfolio.
Meanwhile, considering DCO’s slower revenue momentum in the commercial market and lack of recent contract wins, investors may take a cautious stance. Nevertheless, those who already own DCO may continue to do so, as it remains a steady performer with notable defense exposure.
Image: Bigstock
Astronics vs. Ducommun: Which Aerospace Supplier Is the Better Player Now?
Increasing aircraft production rates worldwide, along with rising aftermarket jet service, backed by steadily increasing global air travel, are driving demand for aerospace supplier stocks like Astronics Corporation (ATRO - Free Report) and Ducommun Inc. (DCO - Free Report) . Rising defense spending in strengthening nations’ aerial security amid growing geopolitical tensions is also fueling long-term growth for these stocks.
Astronics specializes in innovative electrical power systems, lighting, and inflight connectivity solutions (for both commercial and defense clients) — key components in the modernization of aircraft cabins and cockpit systems. Ducommun, on the other hand, is a global provider of manufacturing and engineering services, developing innovative electronic, engineered and structural solutions for complex applications in aerospace and defense markets.
As innovative technologies like aircraft electrification, production scale-up, and ease in supply chain disruptions are attracting investors to add more aerospace suppliers to their portfolio, one might find it difficult to choose between ATRO and DCO. Let’s delve deeper to get the appropriate answer.
Key Takeaways for ATRO
Recent Achievements: Astronics ended first-quarter 2025 with an 11.3% year-over-year sales improvement, backed by a solid 13.3% surge in its sales to the commercial transport market and an impressive 94.8% improvement in sales to the military aircraft market. The company also achieved record bookings of $279.7 million in the quarter, which resulted in a book-to-bill ratio of 1.36:1.
Among ATRO’s recent achievements, worth mentioning is the contract that it won in April 2025 to provide the Frequency Converter Unit (“FCU”) for the NASA and Boeing Transonic Truss-Braced Wing (“TTBW”) X-66 aircraft demonstrator. In addition to designing the FCU, Astronics will collaborate closely with project stakeholders to support ground and flight tests, slated to start in 2028. Such contract wins should help ATRO generate steady revenue growth over the coming years, as it has done in the latest reported quarter.
Financial Stability: The company ended March 2025 with a cash and cash equivalent of $26 million. While its long-term debt totaled $160 million as of March 2025-end, its current debt was nil. So, it is safe to conclude that the stock boasts a solid solvency position in the near term, which should enable it to duly meet its capital expenditure target of $35-$40 million in 2025.
Notably, a major part of this investment is expected to be dedicated to new product innovation. Technological innovation is a cornerstone of growth strategy for stocks like ATRO, as both the commercial and defense aerospace markets increasingly thrive on next-gen solutions.
Key Takeaways for DCO
Recent Achievement: Ducommun ended the first quarter of 2025 with 1.7% year-over-year revenue growth, backed by strength in the company’s defense business. Its net income for the first quarter improved 53%, primarily driven by higher gross profit.
Looking ahead, strong demand for select missiles, electronic warfare, military radar and military rotary-wing aircraft platforms, along with new programs such as the Next Generation Jammer and AMRAAM ramp-up, is expected to continue to bolster the company’s operational performance in the upcoming quarters.
Financial Stability: The company’s cash and cash equivalents as of March 29, 2025, totaled $31 million. The company’s long-term debt as of March 29, 2025, was $230 million. Although its long-term debt level was more than the company’s cash reserve, its current debt of $13 million as of the same date was quite lower than that. So, we may safely conclude that DCO holds a strong solvency position, at least in the short run, which should enable it to continue with its inventions — a key growth catalyst for capital-intensive aerospace stocks like DCO.
Risks of Investing in ATRO & DCO:
With ATRO and DCO operating in the broader aerospace sector, both these stocks face some industry-specific challenges that one should consider before investing in them.
For 2025, while both Boeing (BA - Free Report) and Airbus have indicated that they expect increases in build rates compared to 2024, the growth (to date) has been slower than initially expected and below pre-pandemic levels. Since both these companies are major OEM clients for ATRO and DCO, the slower ramp-up in aircraft production could dampen commercial revenue growth for both these aerospace suppliers. In fact, DCO did face weak sales from its commercial end-use markets, owing to lower revenues from Boeing 737 MAX and in-flight entertainment products.
Moreover, the recently imposed U.S. import tariffs on many of the nation’s trading partners could cause long-term disruptions in global trade, with the aerospace sector being no exception. This, in turn, may negatively impact the commercial aerospace business of both ATRO and DCO.
How Do Zacks Estimates Compare for ATRO & DCO?
The Zacks Consensus Estimate for ATRO’s 2025 sales and earnings per share (EPS) implies an improvement of 6.4% and 37.6%, respectively, from the year-ago quarter’s reported figures. ATRO’s EPS estimates have shown an upward movement over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DCO’s 2025 sales implies a year-over-year improvement of 4.8%, while that for earnings suggests a 11.6% surge. The stock’s 2025 and 2026 EPS estimates have shown upward movement over the past 60 days.
Image Source: Zacks Investment Research
Stock Price Performance: ATRO vs DCO
ATRO (up 58.9%) has outperformed DCO (up 19.7%) over the past three months. Also, in the past year, ATRO has outperformed DCO. While ATRO’s shares surged 53.3%, DCO rose 20.2%.
Image Source: Zacks Investment Research
Astronics’ Valuation Less Attractive Than Ducommun
Astronics is trading at a premium, with its forward 12-month price/earnings multiple of 19.42X being above DCO’s forward price/earnings multiple of 17.52X. Also, when compared to its one-year median, ATRO is trading at a premium.
Image Source: Zacks Investment Research
ATRO More Leveraged Than DCO
Given that these stocks are facing the brunt of the supply-chain challenge, which is still affecting the commercial aerospace industry, a comparative analysis of their long-term debt-to-capital suggests that ATRO is more debt-ridden than DCO.
Image Source: Zacks Investment Research
ATRO’s ROE Better Than DCO
A comparative analysis of both these stocks’ Return on Equity (ROE) suggests that that ATRO is more efficient at generating profits from its equity base than DCO.
Image Source: Zacks Investment Research
Is ATRO Better Than DCO?
While both Astronics and Ducommun are benefiting from the aerospace sector’s long-term tailwinds, ATRO presents a more compelling investment opportunity at this moment. Astronics is capitalizing on strong momentum across both commercial and military markets, evidenced by double-digit sales growth and record bookings.
In contrast, DCO has faced recent headwinds from weaker sales in its commercial end-use markets, particularly tied to Boeing 737 MAX and in-flight entertainment systems.
Though ATRO is trading at a valuation premium and carries higher leverage than DCO, its superior ROE, outperformance at the bourses, and recent contract wins provide confidence in its growth trajectory. So, investors looking to ride the aerospace upcycle with a high-potential growth stock may consider adding it to their portfolio.
Meanwhile, considering DCO’s slower revenue momentum in the commercial market and lack of recent contract wins, investors may take a cautious stance. Nevertheless, those who already own DCO may continue to do so, as it remains a steady performer with notable defense exposure.
While ATRO sports a Zacks Rank #1 (Strong Buy), DCO carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.