Analyzing Howmet Aerospace (NYSE:HWM) & StandardAero (NYSE:SARO)

StandardAero (NYSE:SARO) and Howmet Aerospace (NYSE:HWM) are both aerospace companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

This table compares StandardAero and Howmet Aerospace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
StandardAero	2.37%	8.87%	2.98%
Howmet Aerospace	18.09%	28.17%	12.26%

Valuation & Earnings

This table compares StandardAero and Howmet Aerospace”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
StandardAero	$5.24 billion	1.74	$10.97 million	$0.41	66.50
Howmet Aerospace	$7.43 billion	10.29	$1.16 billion	$3.42	55.45

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

Analyst Ratings

This is a summary of current recommendations for StandardAero and Howmet Aerospace, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
StandardAero	2	4	7	1	2.50
Howmet Aerospace	0	5	14	0	2.74

StandardAero presently has a consensus target price of $34.42, suggesting a potential upside of 26.22%. Howmet Aerospace has a consensus target price of $178.00, suggesting a potential downside of 6.14%. Given StandardAero’s higher possible upside, analysts plainly believe StandardAero is more favorable than Howmet Aerospace.

Insider & Institutional Ownership

90.5% of Howmet Aerospace shares are owned by institutional investors. 1.1% of Howmet Aerospace shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Howmet Aerospace beats StandardAero on 11 of the 14 factors compared between the two stocks.

About StandardAero

StandardAero, Inc. provides aerospace engine aftermarket services for fixed and rotary wing aircraft in the United States, Canada, the United Kingdom, Rest of Europe, Asia, and internationally. It operates in two segments, Engine Services and Component Repair Services. The Engine Services segment provides a suite of aftermarket services, including maintenance, repair and overhaul, on-wing and field service support, asset management, and engineering and related solutions to customers in the commercial aerospace, military and helicopter, and business aviation end markets. The Component Repair Services segment offers engine component and accessory repairs to the commercial aerospace, military and helicopter, land and marine, and oil and gas end markets. The company was founded in 1911 and is headquartered in Scottsdale, Arizona.

About Howmet Aerospace

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating and structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners; and latches, bearings, fluid fittings, and installation tools. The Engineered Structures segment provides titanium ingots and mill products, aluminum and nickel forgings, and machined components and assemblies for aerospace and defense applications; and titanium forgings, extrusions, and forming and machining services for airframe, wing, aero-engine, and landing gear components. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. Howmet Aerospace Inc. was founded in 1888 and is based in Pittsburgh, Pennsylvania.