Reviewing Sypris Solutions (NASDAQ:SYPR) & AeroVironment (NASDAQ:AVAV)

AeroVironment (NASDAQ:AVAV) and Sypris Solutions (NASDAQ:SYPR) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility & Risk

AeroVironment has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Sypris Solutions has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Earnings and Valuation

This table compares AeroVironment and Sypris Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AeroVironment	$1.98 billion	3.17	-$265.12 million	($2.34)	-52.78
Sypris Solutions	$119.89 million	0.23	-$6.34 million	($0.47)	-2.57

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for AeroVironment and Sypris Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AeroVironment	1	5	19	2	2.81
Sypris Solutions	1	0	0	0	1.00

AeroVironment presently has a consensus target price of $223.86, suggesting a potential upside of 81.26%. Given AeroVironment’s stronger consensus rating and higher probable upside, equities analysts plainly believe AeroVironment is more favorable than Sypris Solutions.

Insider and Institutional Ownership

86.4% of AeroVironment shares are held by institutional investors. Comparatively, 44.7% of Sypris Solutions shares are held by institutional investors. 0.8% of AeroVironment shares are held by insiders. Comparatively, 47.9% of Sypris Solutions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares AeroVironment and Sypris Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AeroVironment	-5.77%	4.04%	3.13%
Sypris Solutions	-9.23%	-67.14%	-9.87%

Summary

AeroVironment beats Sypris Solutions on 11 of the 14 factors compared between the two stocks.

About AeroVironment

AeroVironment, Inc. develops uncrewed aircraft systems and other technology for defense, government and commercial customers. Its products include small drones used for reconnaissance and surveillance, as well as the Switchblade family of loitering munitions. The company also provides counter-drone systems, training, support and related services. Founded in 1971 by engineer and inventor Paul MacCready, AeroVironment has a history of developing aircraft and uncrewed systems. Its customers include U.S. government and military organizations, allied nations and commercial users.

About Sypris Solutions

Sypris Solutions, Inc. is a diversified manufacturing and engineering company headquartered in Louisville, Kentucky. Through its operating businesses, the company provides components, assemblies and manufacturing services to customers in the commercial vehicle, automotive, industrial, energy, aerospace and defense markets. Sypris Technologies manufactures forged, machined and assembled components for vehicles and industrial equipment. Its products include drivetrain and transmission components, structural and precision-machined parts, and other specialized components used in commercial vehicles, off-highway equipment, energy systems and related industrial applications.