Critical Survey: StandardAero (NYSE:SARO) & Wrap Technologies (NASDAQ:WRAP)

Wrap Technologies (NASDAQ:WRAP) and StandardAero (NYSE:SARO) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

8.8% of Wrap Technologies shares are held by institutional investors. 33.3% of Wrap Technologies shares are held by insiders. Comparatively, 2.1% of StandardAero shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Wrap Technologies and StandardAero, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
StandardAero	0	6	7	2	2.73

StandardAero has a consensus target price of $34.77, indicating a potential upside of 38.80%. Given StandardAero’s stronger consensus rating and higher probable upside, analysts clearly believe StandardAero is more favorable than Wrap Technologies.

Risk & Volatility

Wrap Technologies has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500. Comparatively, StandardAero has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Earnings and Valuation

This table compares Wrap Technologies and StandardAero”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.67 million	19.31	-$10.34 million	($0.27)	-5.96
StandardAero	$6.06 billion	1.37	$277.42 million	$0.97	25.82

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

Profitability

This table compares Wrap Technologies and StandardAero’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-205.10%	-101.24%	-82.26%
StandardAero	5.12%	14.52%	5.80%

Summary

StandardAero beats Wrap Technologies on 11 of the 15 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, Arizona.

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.