Loar (NYSE:LOAR) vs. Elbit Systems (NASDAQ:ESLT) Critical Survey

Elbit Systems (NASDAQ:ESLT) and Loar (NYSE:LOAR) are both aerospace companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

Insider & Institutional Ownership

17.9% of Elbit Systems shares are owned by institutional investors. 0.8% of Elbit Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Elbit Systems and Loar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Elbit Systems	3.85%	10.70%	3.16%
Loar	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent recommendations and price targets for Elbit Systems and Loar, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Elbit Systems	0	0	0	0	N/A
Loar	0	1	3	0	2.75

Loar has a consensus target price of $77.00, indicating a potential downside of 12.85%. Given Loar’s higher probable upside, analysts clearly believe Loar is more favorable than Elbit Systems.

Earnings & Valuation

This table compares Elbit Systems and Loar”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Elbit Systems	$5.97 billion	1.70	$215.13 million	$5.44	42.04
Loar	N/A	N/A	N/A	N/A	N/A

Elbit Systems has higher revenue and earnings than Loar.

Summary

Elbit Systems beats Loar on 6 of the 8 factors compared between the two stocks.

About Elbit Systems

Elbit Systems Ltd. develops and supplies a portfolio of airborne, land, and naval systems and products for the defense, homeland security, and commercial aviation applications primarily in Israel. The company operates through Aerospace, C4I and Cyber, ISTAR and EW, Land, and Elbit Systems of America segments. It also offers military aircraft and helicopter systems; commercial aviation systems and aerostructures; unmanned aircraft systems; electro-optic, night vision, and countermeasures systems; naval systems; land vehicle systems; munitions, such as precision munitions for land, air, and sea applications; command, control, communications, computer, intelligence, surveillance and reconnaissance, and cyber systems; electronic warfare and signal intelligence systems; and other commercial activities. In addition, the company manufactures and sells data links and radio communication systems and equipment, and cyber intelligence, autonomous, and homeland security solutions. Further, it provides various electronic warfare and signal intelligence systems, and laser systems; armored vehicle and other platforms survivability and protection systems, artillery, and mortar systems, as well as provides various training and support services. Additionally, the company offers products and systems solutions to military, homeland security, medical instrumentation, and commercial aviation clients. It markets its systems and products as a prime contractor or subcontractor to various governments and companies. It also has operations in Israel, North America, Europe, Latin America, the Asia-Pacific, and internationally. The company was incorporated in 1966 and is based in Haifa, Israel.

About Loar

Loar Holdings Inc., through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices. The company also provides auto throttles, lap-belt airbags, two-and three-point seat belts, water purification systems, fire barriers, polyimide washers and bushings, latches, hold-open and tie rods, temperature and fluid sensors and switches, carbon and metallic brake discs, fluid and pneumatic-based ice protection, RAM air components, sealing solutions, actuation devices, and others. It primarily serves commercial, business jet and general aviation, and defense markets. Loar Holdings Inc. was founded in 2017 and is headquartered in White Plains, New York.