Analyzing XTI Aerospace (NASDAQ:XTIA) and Redwire (NYSE:RDW)

XTI Aerospace (NASDAQ:XTIA) and Redwire (NYSE:RDW) are both small-cap aerospace companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XTI Aerospace	$3.04 million	9.74	-$35.60 million	($39.23)	-0.04
Redwire	$296.15 million	3.18	-$114.32 million	($3.17)	-2.06

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

Institutional and Insider Ownership

11.7% of XTI Aerospace shares are owned by institutional investors. Comparatively, 8.1% of Redwire shares are owned by institutional investors. 7.4% of XTI Aerospace shares are owned by insiders. Comparatively, 2.6% of Redwire shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares XTI Aerospace and Redwire’s 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%
Redwire	-70.32%	-29.56%	-9.10%

Volatility and Risk

XTI Aerospace has a beta of 4.84, suggesting that its share price is 384% more volatile than the S&P 500. Comparatively, Redwire has a beta of 2.45, suggesting that its share price is 145% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for XTI Aerospace and Redwire, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XTI Aerospace	1	0	0	1	2.50
Redwire	2	1	6	0	2.44

Redwire has a consensus target price of $15.06, suggesting a potential upside of 130.14%. Given Redwire’s higher possible upside, analysts plainly believe Redwire is more favorable than XTI Aerospace.

Summary

XTI Aerospace beats Redwire on 8 of the 15 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 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.