Environmental Tectonics (OTCMKTS:ETCC) versus AerSale (NASDAQ:ASLE) Head-To-Head Contrast

AerSale (NASDAQ:ASLE) and Environmental Tectonics (OTCMKTS:ETCC) are both small-cap aerospace companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for AerSale and Environmental Tectonics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AerSale	1	3	0	0	1.75
Environmental Tectonics	0	0	0	0	0.00

AerSale presently has a consensus target price of $7.00, suggesting a potential downside of 7.28%. Given AerSale’s stronger consensus rating and higher probable upside, research analysts plainly believe AerSale is more favorable than Environmental Tectonics.

Profitability

This table compares AerSale and Environmental Tectonics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AerSale	1.73%	2.10%	1.40%
Environmental Tectonics	15.91%	211.23%	8.35%

Earnings & Valuation

This table compares AerSale and Environmental Tectonics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AerSale	$345.07 million	1.03	$5.85 million	$0.13	58.08
Environmental Tectonics	$62.94 million	0.18	$13.06 million	$0.60	1.98

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

Insider and Institutional Ownership

69.5% of AerSale shares are held by institutional investors. 19.2% of AerSale shares are held by insiders. Comparatively, 74.8% of Environmental Tectonics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

AerSale has a beta of 0.12, meaning that its stock price is 88% less volatile than the S&P 500. Comparatively, Environmental Tectonics has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Summary

Environmental Tectonics beats AerSale on 7 of the 13 factors compared between the two stocks.

About AerSale

AerSale Corporation provides aftermarket commercial aircraft, engines, and its parts to passenger and cargo airlines, leasing companies, original equipment manufacturers, and government and defense contractors, as well as maintenance, repair, and overhaul (MRO) service providers worldwide. It operates in two segments, Asset Management Solutions and Technical Operations (TechOps). The Asset Management Solutions segment engages in the sale and lease of aircraft, engines, and airframes, as well as disassembly of these assets for component parts. The TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, heavy aircraft maintenance and modification, and component MRO, as well as end-of-life disassembly services. This segment provides aircraft modifications, cargo and tanker conversions of aircraft, and aircraft storage; and MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components. The company was founded in 2008 and is headquartered in Coral Gables, Florida.

About Environmental Tectonics

Environmental Tectonics Corporation, together with its subsidiaries, operates as an engineered solutions company in the United States and internationally. It operates in two segments, Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment engages in the design, manufacture, and sale of aircrew training systems to commercial, governmental, and military defense agencies; training devices, including altitude and multiplace chambers to governmental and military defense agencies, and civil aviation organizations; and advanced disaster management simulators to governmental organizations, original equipment manufacturers, fire and emergency training schools, universities, and airports, as well as provides integrated logistics support services. The CIS segment is involved in the design, manufacture, and sale of steam and gas sterilizers to medical device and pharmaceutical manufacturers, as well as universities; and environmental testing and simulation systems primarily to commercial automotive, as well as to heating, ventilation, and air conditioning manufacturers. This segment also provides parts, as well as upgrade, maintenance, and repair services. The company markets its products through independent sales representatives and distributors. Environmental Tectonics Corporation was incorporated in 1969 and is headquartered in Southampton, Pennsylvania.