Analyzing StandardAero (NYSE:SARO) & Redwire (NYSE:RDW)

StandardAero (NYSE:SARO) and Redwire (NYSE:RDW) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares StandardAero and Redwire’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	2.37%	8.87%	2.98%
Redwire	-71.95%	-32.67%	-7.53%

Valuation & Earnings

This table compares StandardAero and Redwire”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$5.24 billion	1.71	$10.97 million	$0.41	65.23
Redwire	$304.10 million	4.18	-$114.32 million	($3.25)	-2.71

StandardAero has higher revenue and earnings than Redwire. Redwire is trading at a lower price-to-earnings ratio than StandardAero, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

8.1% of Redwire shares are held by institutional investors. 2.6% of Redwire shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for StandardAero and Redwire, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	0	4	6	1	2.73
Redwire	1	1	7	0	2.67

StandardAero currently has a consensus target price of $34.36, indicating a potential upside of 28.49%. Redwire has a consensus target price of $18.07, indicating a potential upside of 105.01%. Given Redwire’s higher probable upside, analysts clearly believe Redwire is more favorable than StandardAero.

Summary

StandardAero beats Redwire on 9 of the 14 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.