Rockwell Collins, Inc. (COL)’s a Good Long-Term Play: The Boeing Company (BA), Honeywell (HON)

Rockwell Collins pays a quarterly dividend of $0.30 per share. The stock has a trailing price-to-earnings ratio of 14, compared with less expensive 12 for competitor Garmin Ltd. (NASDAQ:GRMN).

Unlike Rockwell, Garmin is not tied solely to the aerospace industry. Last month, Garmin introduced a cockpit — dubbed the K2 platform — designed for automobiles, which turns a vehicle’s traditional dashboard into an electronic cockpit with features that were inspired by the company’s avionics and marine technology innovations. Shares of Garmin have pulled back about 10% year to date.

The aerospace and defense sector is certainly facing uncertain times on several levels. For its part, Rockwell Collins is adapting to the uncertainty with as much clarity as possible and has offered investors a reasonable timeframe for growth. The company has met the unknowns with conservative financial projections, which could work in the stock’s favor. The outlook for Rockwell Collins seems appropriate for a long-term strategy, such as a pension fund or an individual willing to wait a couple of years for the growth.

The article This Stock’s a Good Long-Term Play originally appeared on Fool.com and is written by Gerelyn Terzo.

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