Head to Head Analysis: Virgin Galactic (NYSE:SPCE) vs. EVE (NYSE:EVEX)

Virgin Galactic (NYSE:SPCE) and EVE (NYSE:EVEX) are both aerospace companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares Virgin Galactic and EVE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virgin Galactic	-5,972.70%	-97.17%	-33.39%
EVE	N/A	-138.86%	-57.79%

Institutional and Insider Ownership

46.6% of Virgin Galactic shares are held by institutional investors. Comparatively, 1.3% of EVE shares are held by institutional investors. 0.3% of Virgin Galactic shares are held by company insiders. Comparatively, 0.3% of EVE shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Virgin Galactic and EVE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virgin Galactic	1	2	1	0	2.00
EVE	0	1	3	0	2.75

Virgin Galactic currently has a consensus target price of $4.81, suggesting a potential upside of 54.74%. EVE has a consensus target price of $6.67, suggesting a potential downside of 5.30%. Given Virgin Galactic’s higher possible upside, equities analysts clearly believe Virgin Galactic is more favorable than EVE.

Earnings and Valuation

This table compares Virgin Galactic and EVE”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virgin Galactic	$5.51 million	23.46	-$346.74 million	($11.93)	-0.26
EVE	N/A	N/A	-$138.17 million	($0.55)	-12.80

EVE has lower revenue, but higher earnings than Virgin Galactic. EVE is trading at a lower price-to-earnings ratio than Virgin Galactic, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Virgin Galactic has a beta of 2.09, indicating that its share price is 109% more volatile than the S&P 500. Comparatively, EVE has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Summary

Virgin Galactic beats EVE on 8 of the 13 factors compared between the two stocks.

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.

About EVE

Eve Holding, Inc. is a special purpose acquisition company focused on the aviation sector. The company was founded on 7th August, 2020 and is headquartered in Melbourne, FL.