Financial Contrast: Passur Aerospace (OTCMKTS:PSSR) versus AAR (NYSE:AIR)

AAR (NYSE:AIR) and Passur Aerospace (OTCMKTS:PSSR) are both aerospace companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and price targets for AAR and Passur Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AAR	0	2	3	0	2.60
Passur Aerospace	0	0	0	0	0.00

AAR presently has a consensus price target of $89.33, suggesting a potential upside of 8.34%. Given AAR’s stronger consensus rating and higher possible upside, analysts clearly believe AAR is more favorable than Passur Aerospace.

Profitability

This table compares AAR and Passur Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AAR	1.01%	12.29%	5.16%
Passur Aerospace	N/A	N/A	N/A

Institutional and Insider Ownership

90.7% of AAR shares are owned by institutional investors. 3.6% of AAR shares are owned by company insiders. Comparatively, 62.0% of Passur Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares AAR and Passur Aerospace”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AAR	$2.86 billion	1.13	$12.50 million	$0.78	105.71
Passur Aerospace	N/A	N/A	N/A	($0.19)	-0.21

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

Volatility and Risk

AAR has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Passur Aerospace has a beta of 8, indicating that its stock price is 700% more volatile than the S&P 500.

Summary

AAR beats Passur Aerospace on 10 of the 12 factors compared between the two stocks.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes. This segment also develops specific aircraft components and parts; and designs proprietary designated engineering representative repairs. The Integrated Solutions segment engages in the fleet management and operation of customer-owned aircraft; provision of supply chain logistics services, such as material planning, sourcing, logistics, information and program management, and parts and component repair and overhaul services; and flight hour component inventory and repair services. In addition, the segment provides integrated software solutions comprising Trax, a cloud-based electronic enterprise resource platform, as well as a suite of paperless mobility apps for automating MRO workflows. The Expeditionary Services segment designs, manufactures, and repairs transportation pallets; and containers and shelters for military and humanitarian tactical deployment activities, including armories, supply and parts storage, refrigeration systems, tactical operation centers, briefing rooms, laundry and kitchen facilities, water treatment, and sleeping quarters, as well as engages in provision of engineering, design, and system integration services for specialized command and control systems. AAR Corp. was founded in 1951 and is headquartered in Wood Dale, Illinois.

About Passur Aerospace

PASSUR Aerospace, Inc., a business intelligence company, provides predictive analytics and decision support technology for the aviation industry in the United States and internationally. The company's products, include ARiVAT EMPO, a dynamic gate-to-gate global flight tracking; ARiVA AWARE that provides continuous forecasts and alerts to achieve the most efficient execution of the daily operation; and ARiVA WORKFLOW, an integrated communication and collaboration on shared workflow platform to maximize use of existing assets and capacity. Its products also comprise ARiVA INTEL Data, a reporting and analytical tool that enable insights into operational performance to drive continuous improvement; ARIVA BIZAV, a complete set of tools to help forecast and manage the operation; ARIVA LFM, which ensures various landing fees and related charges are being fully and accurately captured and billed; and ARiVA STRATEGY that integrates commercial strategies and operational priorities. It serves airlines and airports. PASSUR Aerospace, Inc. was founded in 1967 and is headquartered in Stamford, Connecticut.