Sypris Solutions (NASDAQ:SYPR) versus Loar (NYSE:LOAR) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Loar	11.60%	9.37%	5.39%
Sypris Solutions	-9.23%	-67.14%	-9.87%

Earnings and Valuation

This table compares Loar and Sypris Solutions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loar	$496.28 million	11.89	$72.15 million	$0.72	87.48
Sypris Solutions	$119.89 million	0.35	-$6.34 million	($0.47)	-3.83

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

Analyst Recommendations

This is a breakdown of current ratings for Loar and Sypris Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loar	0	3	4	0	2.57
Sypris Solutions	1	0	0	0	1.00

Loar currently has a consensus target price of $86.00, suggesting a potential upside of 36.54%. Given Loar’s stronger consensus rating and higher possible upside, research analysts plainly believe Loar is more favorable than Sypris Solutions.

Volatility and Risk

Loar has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Sypris Solutions has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

44.7% of Sypris Solutions shares are owned by institutional investors. 20.1% of Loar shares are owned by company insiders. Comparatively, 47.9% of Sypris Solutions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Loar beats Sypris Solutions on 10 of the 13 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 Sypris Solutions

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.