Critical Survey: Huntington Ingalls Industries (NYSE:HII) and Satellogic (NASDAQ:SATL)

Huntington Ingalls Industries (NYSE:HII) and Satellogic (NASDAQ:SATL) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings for Huntington Ingalls Industries and Satellogic, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huntington Ingalls Industries	0	5	5	0	2.50
Satellogic	1	1	5	1	2.75

Huntington Ingalls Industries presently has a consensus target price of $368.88, suggesting a potential upside of 36.28%. Satellogic has a consensus target price of $8.90, suggesting a potential upside of 77.47%. Given Satellogic’s stronger consensus rating and higher probable upside, analysts clearly believe Satellogic is more favorable than Huntington Ingalls Industries.

Insider and Institutional Ownership

90.5% of Huntington Ingalls Industries shares are held by institutional investors. Comparatively, 17.6% of Satellogic shares are held by institutional investors. 0.8% of Huntington Ingalls Industries shares are held by insiders. Comparatively, 38.8% of Satellogic shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Huntington Ingalls Industries has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, Satellogic has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares Huntington Ingalls Industries and Satellogic’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huntington Ingalls Industries	5.01%	12.89%	5.26%
Satellogic	-325.65%	303.84%	6.01%

Earnings & Valuation

This table compares Huntington Ingalls Industries and Satellogic”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huntington Ingalls Industries	$12.48 billion	0.85	$605.00 million	$16.78	16.13
Satellogic	$31.91 million	24.16	-$4.78 million	($0.82)	-6.12

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

Summary

Satellogic beats Huntington Ingalls Industries on 8 of the 14 factors compared between the two stocks.

About Huntington Ingalls Industries

Huntington Ingalls Industries, Inc. designs, builds, overhauls, and repairs military ships in the United States. It operates through three segments: Ingalls, Newport News, and Mission Technologies. The company is involved in the design and construction of non-nuclear ships comprising amphibious assault ships; expeditionary warfare ships; surface combatants; and national security cutters for the U.S. Navy and U.S. Coast Guard. It also provides nuclear-powered ships, such as aircraft carriers and submarines, as well as refueling and overhaul, and inactivation services of nuclear-powered aircraft carriers. In addition, the company offers naval nuclear support services, including fleet services comprising design, construction, maintenance, and disposal activities for in-service the U.S. Navy nuclear ships; and maintenance services on nuclear reactor prototypes. Further, the company provides C5ISR systems and operations; application of artificial intelligence and machine learning to battlefield decisions; defensive and offensive cyberspace strategies and electronic warfare; live, virtual, and constructive solutions; unmanned, autonomous systems; and fleet sustainment; and critical nuclear operations. Huntington Ingalls Industries, Inc. was founded in 1886 and is headquartered in Newport News, Virginia.

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.