Spirit AeroSystems (NYSE:SPR – Get Free Report) and Loar (NYSE:LOAR – Get Free Report) are both mid-cap aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.
Insider and Institutional Ownership
93.6% of Spirit AeroSystems shares are held by institutional investors. 0.9% of Spirit AeroSystems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares Spirit AeroSystems and Loar’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Spirit AeroSystems | -18.26% | N/A | -12.84% |
Loar | N/A | N/A | N/A |
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Spirit AeroSystems | $6.45 billion | 0.59 | -$616.10 million | ($8.69) | -3.75 |
Loar | $358.10 million | 18.45 | N/A | N/A | N/A |
Loar has lower revenue, but higher earnings than Spirit AeroSystems.
Analyst Ratings
This is a summary of recent recommendations and price targets for Spirit AeroSystems and Loar, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Spirit AeroSystems | 0 | 16 | 2 | 0 | 2.11 |
Loar | 0 | 1 | 3 | 0 | 2.75 |
Spirit AeroSystems presently has a consensus target price of $34.73, indicating a potential upside of 6.71%. Loar has a consensus target price of $75.75, indicating a potential upside of 2.84%. Given Spirit AeroSystems’ higher possible upside, analysts clearly believe Spirit AeroSystems is more favorable than Loar.
Summary
Loar beats Spirit AeroSystems on 5 of the 9 factors compared between the two stocks.
About Spirit AeroSystems
Spirit AeroSystems Holdings, Inc. engages in the design, engineering, manufacture, and marketing of commercial aerostructures worldwide. It operates through three segments: Commercial, Defense & Space, and Aftermarket. The Commercial segment offers forward, mid, and rear fuselage sections and systems, floor beams, nacelles, struts/pylons, horizontal and vertical stabilizers, flaps and slats flight control surfaces, wing structures, and wing systems. This segment primarily serves commercial and business/regional jet programs. The Defense & Space segment engages in the fabrication, bonding, assembly, testing, tooling, processing, engineering analysis, and training on fuselage, strut, nacelle, and wing aerostructures; provision of missiles and hypersonics solutions, such as solid rocket motor throats, nozzles, re-entry vehicle thermal protections systems; forward cockpit and cabin, and fuselage work on rotorcraft aerostructures; and classified programs. This segment primarily serves U.S. Government defense programs. The Aftermarket segment provides maintenance, repair, and overhaul services; fuselage, strut, nacelle, and wing aerostructures spare parts; repair services for radome, flight control surfaces, and nacelles; rotable assets trading and leasing; and engineering services. This segment primarily serves both commercial and defense and space programs. The company was formerly known as Mid-Western Aircraft Systems Holdings, Inc. Spirit AeroSystems Holdings, Inc. was founded in 1927 and is headquartered in Wichita, Kansas.
About Loar
Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.
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