Huntington Ingalls Industries (NYSE:HII – Get Free Report) and Virgin Galactic (NYSE:SPCE – Get Free Report) are both aerospace companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Insider & Institutional Ownership
90.5% of Huntington Ingalls Industries shares are held by institutional investors. Comparatively, 46.6% of Virgin Galactic shares are held by institutional investors. 0.7% of Huntington Ingalls Industries shares are held by insiders. Comparatively, 0.4% of Virgin Galactic shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Huntington Ingalls Industries and Virgin Galactic’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Huntington Ingalls Industries | 4.76% | 12.26% | 4.68% |
| Virgin Galactic | -5,972.70% | -97.17% | -33.39% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Huntington Ingalls Industries | $11.46 billion | 0.85 | $550.00 million | $13.88 | 17.99 |
| Virgin Galactic | $7.04 million | 16.57 | -$346.74 million | ($11.93) | -0.24 |
Huntington Ingalls Industries has higher revenue and earnings than Virgin Galactic. Virgin Galactic is trading at a lower price-to-earnings ratio than Huntington Ingalls Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for Huntington Ingalls Industries and Virgin Galactic, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Huntington Ingalls Industries | 1 | 6 | 2 | 0 | 2.11 |
| Virgin Galactic | 1 | 2 | 1 | 0 | 2.00 |
Huntington Ingalls Industries currently has a consensus price target of $236.38, suggesting a potential downside of 5.36%. Virgin Galactic has a consensus price target of $4.81, suggesting a potential upside of 71.57%. Given Virgin Galactic’s higher possible upside, analysts plainly believe Virgin Galactic is more favorable than Huntington Ingalls Industries.
Risk & Volatility
Huntington Ingalls Industries has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500. Comparatively, Virgin Galactic has a beta of 2.09, indicating that its stock price is 109% more volatile than the S&P 500.
Summary
Huntington Ingalls Industries beats Virgin Galactic on 11 of the 14 factors compared between the two stocks.
About Huntington Ingalls Industries
Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.
About Virgin Galactic
Virgin Galactic Holdings, Inc., an aerospace and space travel company, focuses on the development, manufacture, and operation of spaceships and related technologies. The company engages in the design and development, manufacturing, ground and flight testing, spaceflight operation, and post-flight maintenance of spaceflight systems for private individuals, researchers, and government agencies. Virgin Galactic Holdings, Inc. is headquartered in Tustin, California.
Receive News & Ratings for Huntington Ingalls Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Huntington Ingalls Industries and related companies with MarketBeat.com's FREE daily email newsletter.
