Redwire (NYSE:RDW) versus GE Aerospace (NYSE:GE) Financial Analysis

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Redwire	-71.95%	-32.67%	-7.53%
GE Aerospace	18.34%	34.01%	5.26%

Risk and Volatility

Redwire has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500. Comparatively, GE Aerospace has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Institutional and Insider Ownership

8.1% of Redwire shares are held by institutional investors. Comparatively, 74.8% of GE Aerospace shares are held by institutional investors. 2.6% of Redwire shares are held by company insiders. Comparatively, 0.2% of GE Aerospace shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Redwire and GE Aerospace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	1	7	0	2.50
GE Aerospace	0	2	15	0	2.88

Redwire currently has a consensus target price of $17.21, indicating a potential upside of 118.32%. GE Aerospace has a consensus target price of $301.27, indicating a potential downside of 2.74%. Given Redwire’s higher probable upside, equities analysts clearly believe Redwire is more favorable than GE Aerospace.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$261.35 million	4.35	-$114.32 million	($3.25)	-2.43
GE Aerospace	$38.70 billion	8.44	$6.56 billion	$7.49	41.36

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

Summary

GE Aerospace beats Redwire on 11 of the 14 factors compared between the two stocks.

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.

About GE Aerospace

GE Aerospace (also known as General Electric) is a company that specializes in providing aerospace products and services. It operates through two reportable segments: Commercial Engines and Services and Defense and Propulsion Technologies. It offers jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. GE demerged into GE Vernova, GE Aerospace, and GE Healthcare.