Critical Survey: Redwire (NYSE:RDW) & Satellogic (NASDAQ:SATL)

Redwire (NYSE:RDW) and Satellogic (NASDAQ:SATL) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Redwire and Satellogic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Redwire	2	4	5	1	2.42
Satellogic	1	1	5	1	2.75

Redwire currently has a consensus target price of $14.69, suggesting a potential upside of 36.67%. Satellogic has a consensus target price of $8.90, suggesting a potential upside of 79.80%. Given Satellogic’s stronger consensus rating and higher possible upside, analysts clearly believe Satellogic is more favorable than Redwire.

Risk & Volatility

Redwire has a beta of 3.08, suggesting that its share price is 208% more volatile than the S&P 500. Comparatively, Satellogic has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500.

Profitability

This table compares Redwire and Satellogic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Redwire	-57.26%	-11.02%	-8.17%
Satellogic	-325.65%	303.84%	6.01%

Insider and Institutional Ownership

8.1% of Redwire shares are owned by institutional investors. Comparatively, 17.6% of Satellogic shares are owned by institutional investors. 0.8% of Redwire shares are owned by company insiders. Comparatively, 38.8% of Satellogic 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.

Valuation and Earnings

This table compares Redwire and Satellogic”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Redwire	$335.38 million	8.01	-$226.55 million	($1.46)	-7.36
Satellogic	$17.71 million	42.97	-$4.78 million	($0.82)	-6.04

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

Summary

Satellogic beats Redwire on 10 of the 13 factors compared between the two stocks.

About Redwire

Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. The company provides avionics and sensors including star trackers, sun sensors, critical for navigation, and control of spacecraft; camera systems; solar array solutions for spacecraft spanning the spectrum of size, power needs, and orbital location; and strain composite booms, coilable booms, truss structures, telescope baffles, and deployable booms to position sensors or solar arrays away from the spacecraft. It offers software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company microgravity payloads, radio frequency systems, antennas, star trackers, platforms, and in-space manufacturing and biotech facilities. Redwire Corporation is headquartered in Jacksonville, Florida.

About Satellogic

Satellogic Inc. operates as an integrated geospatial company in the Asia Pacific, North America, and internationally. It engages in tasking satellites with monitoring assets and keeping up with their changing reality for government and commercial customers; control satellites on top of specific areas of interest for governments; and sale and support satellites. The company was founded in 2010 and is headquartered in Montevideo, Uruguay.