Financial Review: XTI Aerospace (NASDAQ:XTIA) versus L3Harris Technologies (NYSE:LHX)

XTI Aerospace (NASDAQ:XTIA) and L3Harris Technologies (NYSE:LHX) are both aerospace companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Volatility & Risk

XTI Aerospace has a beta of 4.81, suggesting that its stock price is 381% more volatile than the S&P 500. Comparatively, L3Harris Technologies has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares XTI Aerospace and L3Harris Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XTI Aerospace	-1,714.04%	-655.07%	-179.15%
L3Harris Technologies	7.94%	11.82%	5.47%

Institutional & Insider Ownership

11.7% of XTI Aerospace shares are held by institutional investors. Comparatively, 84.8% of L3Harris Technologies shares are held by institutional investors. 0.3% of XTI Aerospace shares are held by company insiders. Comparatively, 0.7% of L3Harris Technologies 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 XTI Aerospace and L3Harris Technologies, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XTI Aerospace	1	0	0	1	2.50
L3Harris Technologies	0	5	14	0	2.74

L3Harris Technologies has a consensus target price of $279.47, suggesting a potential downside of 6.07%. Given L3Harris Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe L3Harris Technologies is more favorable than XTI Aerospace.

Valuation & Earnings

This table compares XTI Aerospace and L3Harris Technologies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XTI Aerospace	$3.20 million	9.49	-$35.60 million	N/A	N/A
L3Harris Technologies	$21.33 billion	2.61	$1.50 billion	$8.95	33.24

L3Harris Technologies has higher revenue and earnings than XTI Aerospace.

Summary

L3Harris Technologies beats XTI Aerospace on 10 of the 13 factors compared between the two stocks.

About XTI Aerospace

XTI Aerospace, Inc. engages in the provision of aircraft manufacturing. It primarily focuses on the light and mid-size business aircraft market. The company was founded in April 1999 and is headquartered in Englewood, CO.

About L3Harris Technologies

L3Harris Technologies, Inc. provides mission-critical solutions for government and commercial customers worldwide. The company's Integrated Mission Systems segment provides intelligence, surveillance, and reconnaissance (ISR) systems, passive sensing and targeting, electronic attack, autonomy, power and communications, and networks and sensors, as well as advanced combat systems for air, land, and sea sectors. Its Space and Airborne Systems segment offers space payloads, sensors, and full-mission solutions; classified intelligence and cyber; mission avionics; electronic warfare systems; and mission networks systems for air traffic management operations. The company's Communication Systems segment provides broadband communications; tactical radios, software, satellite terminals, and end-to-end battlefield systems for the U.S. Department of Defense, international, federal, and state agency customers; integrated vision solutions, including helmet-mounted integrated night vision goggles with leading-edge image intensifier tubes and weapon-mounted sights, aiming lasers, and range finders; and public safety radios, and system applications and equipment. Its Aerojet Rocketdyne segment provides propulsion technologies and armament systems for strategic defense, missile defense, hypersonic, and tactical systems; and space propulsion and power systems for national security, and space and exploration missions. The company was formerly known as Harris Corporation and changed its name to L3Harris Technologies, Inc. in June 2019. L3Harris Technologies, Inc. was founded in 1895 and is based in Melbourne, Florida.