Financial Comparison: Astronics (NASDAQ:ATRO) and Loar (NYSE:LOAR)

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

Profitability

This table compares Loar and Astronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loar	N/A	N/A	N/A
Astronics	-1.57%	-0.31%	-0.12%

Analyst Ratings

This is a summary of current ratings for Loar and Astronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	1	3	0	2.75
Astronics	0	1	0	0	2.00

Loar presently has a consensus target price of $75.75, indicating a potential downside of 1.64%. Astronics has a consensus target price of $22.00, indicating a potential upside of 7.84%. Given Astronics’ higher possible upside, analysts clearly believe Astronics is more favorable than Loar.

Institutional and Insider Ownership

56.7% of Astronics shares are held by institutional investors. 10.9% of Astronics shares are held 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 and Valuation

This table compares Loar and Astronics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	N/A	N/A	N/A	N/A	N/A
Astronics	$741.40 million	0.96	-$26.42 million	($0.77)	-26.49

Loar has higher earnings, but lower revenue than Astronics.

Summary

Loar beats Astronics on 5 of the 9 factors compared between the two stocks.

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.

About Astronics

Astronics Corporation, through its subsidiaries, designs and manufactures products for the aerospace, defense, and electronics industries in the United States, rest of North America, Asia, Europe, South America, and internationally. The company operates in two segments, Aerospace and Test Systems. The Aerospace segment offers lighting and safety systems, electrical power generation systems, distribution and seat motions systems, aircraft structures, avionics products, system certification, and other products. This segment serves airframe manufacturers (OEM) that build aircraft for the commercial, military, and general aviation markets; suppliers to OEMs; and aircraft operators, such as airlines; suppliers to the aircraft operators; and branches of the U.S. Department of Defense. The Test Systems segment designs, develops, manufactures, and maintains automated test systems that support the aerospace and defense, and mass transit industries, as well as training and simulation devices for commercial and military applications. It serves OEMs and prime government contractors for electronics and military products. Astronics Corporation was incorporated in 1968 and is headquartered in East Aurora, New York.